Tds from sqalary

TDS 883 views 4 replies

Deepak Tapse

Accounts Manager - Taxation

1771 Points Joined April 2009

If a Director receing salary from two different company, then how to calculate TDS form Salary considering both company.

Replies (4)

Akanksha Jain

Article

690 Points Joined July 2011

1. Add the salary received from both the company (eg. Rs. 200,000 and Rs 4,00,000)

2. Calculate the total tax liability.. (Rs. 51,500 in above eg)

3. Proportionately divide the tax libility as per the amount of salary.. (Rs.17,167 and Rs. 34,333)

4. Compute TDS monthly for both the companies.. (Rs. 1,430 and Rs. 2,861)

Manikanth

Chartered Accountant

342 Points Joined October 2012

I think , Salary received from the both co.'s would be aggregated nd apply the slab rates as per the IT provisions for calculating TDS nd then divide proportionatly as per the salaries

Hitesh Khanna

Accounting & Finance Taxation Company

839 Points Joined September 2010

Sub-Section 2 of Section 192 provides that where a person is simultaneously employed with more than one employer, he may furnish the particulars of salary payments and TDS to the employer of his choice. Similarly, on change of employment the particulars of salary and TDS of earlier employment may be furnished to the subsequent employer. These particulars are to be furnished in Form 12 B in accordance with Rule 26A of the I.T.Rules. The employer on receipt of such information is required to take into account the particulars of salary and TDS and then deduct tax at source considering the aggregate salary from all sources.

Sanket

!..Live to Give..!

16432 Points Joined December 2010

Section 192(2) deals with situations where an individual is working under more than one employer or has changed from one employer to another. It provides for deduction of tax at source by such employer (as the taxpayer may choose) from the aggregate salary of the employee who is or has been in receipt of salary from more than one employer. The employee is now required to furnish to the present/chosen employer details of the income under the head “Salaries” due or received from the former/other employer and also tax deducted at source therefrom, in writing and duly verified by him and by the former/other employer.

The present/ chosen employer will be required to deduct tax at source on the aggregate amount of salary (including salary received from the former or other employer).