A person is employed as a consultant for the first 6 months and the same has been considered as an employee after the completion of said period. TDS was deducted separately on consultancy income and salary income. My question is while calculating the salary income shall we consider the consultancy income under “Any other income reported by the employee” and accordingly deduct the difference of tax from his salary income.
For Example:
Consultancy Income - Rs.5,00,000/-
TDS @ 10.3% - Rs. 51,500/-
Salary Income : Rs.5,00,000
Permissible deductions – Rs. 1,00,000
Chargeable salary : Rs.4,00,000
Tax on the above : Rs.36,050
If both income are clubbed :
Gross Total Income : 10,00,000
Permissible deductions : 1,00,000
Total Income : Rs.9,00,00/-
Tax on the above : 1,80,250
Tax deducted : Rs.87,550
Diff : 92,700/-
Who will the responsible for difference tax?
Whether there is any obligation in the hands of the employer to deduct difference tax ?
Or
The assessee can pay the difference of tax as self assessment tax
Pls guide me in this regard.
CAclubindia
