Tax on income from previous employeer

Well if your tax has excess deducted than you can file ITR and take refund.

After submitting form 12B from previous employer calculation of tax liability will be as…

Let’s suppose salary earned from previous employer 5lac

And previous employer deduct tds of 35020/-

And salary drawn from current employer of 4 months 2lac

Its current employer responsibility to consider salary drawn you by previous employer if you submit form 12B to company.

Current employer will calculate tax liability on 5lac+2lac = 7lac

Tax liability comes to 76220-35020 = 41200

Current employer have to deduct tax 41200.00

Hi Pankaj,

Thanks for the instant reply.

The calculation you sent is correct. But I have question that what if both the companies have different compoents on tax exemption.

In my case my previous salary structure has more tax exemption components such as telephone bills, Internet bills, Books etc. and as I produced bills of all of them I got good relief on tax hence my TDS is less over there.

With my current salary structure there are no exemptions at all except HRA and Medical (which are by default there in any slary structure). Now when my previous earnings are added to the current earnings they calculate the tax accoring to the new salary structure hence the total earning goes high and tax amount is also goes high which is actually, I feel, is not a correct calculation. Moreover tax deducted during my previous employement is also not considered here and hence not deducted from the final tax amount.

This is just my curitosity that why my current company should consider the previous earnings at all if the tax for the same has been deducted already (in face in my case the excess tax is deducted)? If the tax is not paid properly (as stated in your example) then they can deduct the tax.

And what if I had not furnished the details of my previous earnings at all as some of my coullegues?

Sorry for the writting an essay but I am putting my points here so that I can clealry explain situation..

Thanks again Pankaj..

Thans and regards,
Chetan Ranpariya

Your current employer should not deduct tax on salary drawn by previous employer because previous employer has already deduct tds don’t worry just file ITR and get back refund.

Hi Pankaj,

Again thaks for the quick reply and the clarifying the doubt.

I have got some clear picture now about the things.... let me share my understanding with the accounts department and get the things clear.

Thanks a ton again.. Pankaj...

thanks and regards,

Chetan Ranpariya