about tds

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

22 October 2010 If an employee work in 2 orgnistion in same year. if 1st employer not deduct his tds then 2nd employer can deduct his tds on total salary of whole year.
example he received 2lakh from his frist job. then 2lakh receved salary from 2nd job in same year.
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CA Navin Jain

CA Navin Jain (Expert)
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22 October 2010 yes second employer can deduct tds on all amount after consent of employee

taxindiaconnect

taxindiaconnect (Expert)
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22 October 2010 The employee can file a declaration in form no 12B of IT Act about his earnings from the previous employer to the new employer, then the new employer will take in to account the income so declared for tax deduction purpose. The new employer is under obligation to compute the tax on annual income of the employee based upon the current period earnings and deduct tax accordingly. For example let us continue with current case only. Let us assume the employee in this case has worked with the current employer for 4 Months and with the old employer for 8 months. In case of declaration the total income of the employee would be 4 Lac and the employer will deduct tax on that basis. In case of no declaration, the total income of the year shall be assumed to be 6 Lac and the total tax payable on 6 lac will be divided 12 and tax deduction would be for 4 months. Say for example tax payable comes to 72,000 for whole year the new employer will divide it 12 and multiply by 4 to arrive a TDS of Rs 24000.

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