Tds on salaries

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Sumitha K (Querist)
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18 November 2011 Hi Expertz,

I shall be grateful to you if you could clarify my below doubt.

Suppose for FY 2011-12, an employee resigns in Sep 2011.

1.Should I compute his salary for the year and recover average salary when he resigns?

2.Since his investments are due after Dec 2011 he says that he will produce those proof to the next employer. Should i consider his investments for computing his IT even though he has not submitted or should I take a declaration that he will submit copies of investments.

Please clarify.

Thanks
Sumitha

CA SUMiT PATWARi

CA SUMiT PATWARi (Expert)
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18 November 2011 From what i have seen in big organisations, the benefit of such investments are not given to the employee, until he/she furnishes proof of them.
Things like PF and insurance premium(which he would pay under normal circumstances) should be allowed for.
Deduct tax based on salary for the year, without allowing for investments(if not submitted the proof).
He/she can ask his new employer to make neecessary adjustments or can file a return to claim refund.

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