Hi,
I work for Company A and due to service tax avoiding purpose(all legal I suppose), I have been offered employment letter of another company B. Directors of both A & B know each other and therefore, they have come to this agreement. I have a Non-compete agreement with Company A, which is valid for 1 year post leaving the company and offer letter of A says that I need prior written consent from A to work for any other company. Both companies are based out of India. If I agree to new offer letter, I will get all my future salary and bonus from B and not from A. I have following doubts:
1. Since I will still be an employee of A but not getting any salary from it, during Tax filing will I need to file taxes for Company A as well. I have been told that I will get form 16 from B and not from A, but I will still be an employee of A although not drawing any salary.
2. For generic purposes like opening a bank account etc, which company's employment I need to present?
Request you to clarify these doubts and also provide me with other precautions which I should keep in mind before accepting the new offer letter.
Regards
CAclubindia
