Where a person has changed jobs during the previous year, how will the tax calcn happen?
Menu
Salaries from two employers
Replies (8)
tax calculation for tds?
When there are more than one employer in any assessment year the employee needs to calculate the income under head salary very carefully as he has to club all the components of the salary from both the employers and to look for the exemptions commutatively.....
Rest all depends upon the particular component (as HRA, Perqs, Allowances etc.) of salary....
I would like to explain my query with the help of one example- If a person has earned annual salary from 2 companies Rs450000 Rs150000 (say the above is net of all deductions), then the tax on the above calcualted seperately for the two companies would be: On 450000- which comes to Rs.80500 On 150000 - Rs. 500 So the above would appear resp. as TDS in Form 16 of the two companies However while computing the income for the year, the combined effect would be considered which means the total salary would come to 600000 Tax on 600000 would 125500 which is much higher than the TDS deducted, what would be tax payble by the employee for the year. Please advise
U have to show all ur income both the employers and calculate GTI ( Gross Total Income ) afetr considering all the exemption u/s 10 & when u calculateGTI give exemption of 80C , 80CCC , 80D , 80G after that u find net salary & based on that u will calculate tax on that income .
regards
pravin agarwal
@ meetu
Yes the employee has to pay Rs. 125500 as income tax and shall be now liable to pay the balance after deducting tds......
He has to choose any one of the two employer and provide him the details of the earning from both of them and deduct TDS accordingly while preparing Form 16
What if 2nd employer has not deducted tds on salary? Second, can the employee take HRA exemption from salary of that 2nd employer? Please advise.
but what if new joined employee do not want to disclose his income from previous employment then what can be done ???
Recent Threads
- What's CGAS?
- A Comprehensive Guide to Modern Digital Marketing
- Income tax status
- Demand raised for 'Self assessment tax' amount AY2
- TDS payment using Form 26QB when buying property o
- Export sales not realised payment not received fro
- RCM related queries
- Negative Export Value in GSTR 3B
- Income tax intimation -AY 24-25
- Tax Implications of Alumni Union (R) under Society
Related Threads
CAclubindia
