Form 16 with less tax deduction
This query is : Resolved
16 February 2011
Hi Professionals,
Can you please help on the below.
1) Is it mandatory to issue Form 16 by excluding previous employer income?
2) When employee claims excess tax deduction in previous employer in case the same is get adjusted in present employer to adjust the excess tax deducted in previous employer, if we issue Form 16 by excluding previous employer income there may be chances of short tax deduction (i,.e Form 16 will show short deduction than actual) so in this case how to issue Form 16?
Can you please help on the below.
1) Is it mandatory to issue Form 16 by excluding previous employer income?
2) When employee claims excess tax deduction in previous employer in case the same is get adjusted in present employer to adjust the excess tax deducted in previous employer, if we issue Form 16 by excluding previous employer income there may be chances of short tax deduction (i,.e Form 16 will show short deduction than actual) so in this case how to issue Form 16?
17 February 2011
Dear Hari,
The employer can consider the pvs employer salary based on the Form 16 submitted and the computation should include the pvs employment salary and tds is to be deducted after considering the tds already made by the pvs employer. But all deductions should be restricted to the maximum limit like Conveyance, HRA, Medical Allowance, 80C deduction etc.,
The employer can consider the pvs employer salary based on the Form 16 submitted and the computation should include the pvs employment salary and tds is to be deducted after considering the tds already made by the pvs employer. But all deductions should be restricted to the maximum limit like Conveyance, HRA, Medical Allowance, 80C deduction etc.,
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17 February 2011
Thank you so much for your response,
But my question is
1) is it Mandatory to show previous ER income and TDS in current employer Form 16? If yes under which heading we should showing in Form 16?
3) if it is not mandatory to show in Form 16 and if we consider the prvs ER income for only taxation purpose and lets assume if prvs ER has deducted more tax and in current employer the excess tax deducted is adjusted, in that case when we exclude previous ER income and TDS from current ER Form 16 there may be chances of Tax liability will arise in the Form 16 in such scenario how to handle?
Please let me know if my question is not clear
But my question is
1) is it Mandatory to show previous ER income and TDS in current employer Form 16? If yes under which heading we should showing in Form 16?
3) if it is not mandatory to show in Form 16 and if we consider the prvs ER income for only taxation purpose and lets assume if prvs ER has deducted more tax and in current employer the excess tax deducted is adjusted, in that case when we exclude previous ER income and TDS from current ER Form 16 there may be chances of Tax liability will arise in the Form 16 in such scenario how to handle?
Please let me know if my question is not clear
23 February 2011
Sir,
Please help me to understand this.
Please help me to understand this.
25 July 2024
Let's address your questions regarding Form 16 and the implications of previous employer's income and TDS:
1. **Showing Previous Employer Income and TDS in Current Form 16:**
- It is not mandatory for the current employer to show the previous employer's income and TDS details in Form 16. Form 16 issued by the current employer typically includes details of salary paid by them during the financial year, exemptions claimed, deductions allowed, and the TDS deducted on such salary.
- Including details of previous employer's income and TDS in Form 16 is not a standard practice. However, if there are adjustments made by the current employer to correct excess TDS deducted by the previous employer, this would typically be reflected in the TDS certificate issued by the current employer.
2. **Handling Tax Liability due to Exclusion of Previous Employer's Income:**
- If the previous employer has deducted more tax than necessary, and the current employer adjusts this excess deduction, it's important to ensure that the total TDS reflected in your Form 26AS (which consolidates all TDS details) matches the actual TDS deducted and deposited against your PAN.
- When excluding the previous employer's income and TDS from the current employer's Form 16, ensure that:
- The correct salary income for the current financial year is reported.
- The TDS deducted by the current employer matches the actual liability based on the salary income for the current year.
- If there is any shortfall in TDS due to adjustments made by the current employer, it should be corrected by either paying the additional tax or adjusting it in subsequent TDS payments.
- The tax liability should be calculated based on the actual salary income received from the current employer and the corresponding TDS deducted by them.
In summary, while it is not mandatory to show previous employer's income and TDS in current Form 16, adjustments made by the current employer to correct excess TDS deducted by the previous employer should be reflected accurately in the TDS certificate issued by the current employer. Ensure that your Form 16 from the current employer accurately reflects your salary income and the TDS deducted against it to avoid any tax liabilities or discrepancies. Always cross-check with your Form 26AS for accurate TDS details.
1. **Showing Previous Employer Income and TDS in Current Form 16:**
- It is not mandatory for the current employer to show the previous employer's income and TDS details in Form 16. Form 16 issued by the current employer typically includes details of salary paid by them during the financial year, exemptions claimed, deductions allowed, and the TDS deducted on such salary.
- Including details of previous employer's income and TDS in Form 16 is not a standard practice. However, if there are adjustments made by the current employer to correct excess TDS deducted by the previous employer, this would typically be reflected in the TDS certificate issued by the current employer.
2. **Handling Tax Liability due to Exclusion of Previous Employer's Income:**
- If the previous employer has deducted more tax than necessary, and the current employer adjusts this excess deduction, it's important to ensure that the total TDS reflected in your Form 26AS (which consolidates all TDS details) matches the actual TDS deducted and deposited against your PAN.
- When excluding the previous employer's income and TDS from the current employer's Form 16, ensure that:
- The correct salary income for the current financial year is reported.
- The TDS deducted by the current employer matches the actual liability based on the salary income for the current year.
- If there is any shortfall in TDS due to adjustments made by the current employer, it should be corrected by either paying the additional tax or adjusting it in subsequent TDS payments.
- The tax liability should be calculated based on the actual salary income received from the current employer and the corresponding TDS deducted by them.
In summary, while it is not mandatory to show previous employer's income and TDS in current Form 16, adjustments made by the current employer to correct excess TDS deducted by the previous employer should be reflected accurately in the TDS certificate issued by the current employer. Ensure that your Form 16 from the current employer accurately reflects your salary income and the TDS deducted against it to avoid any tax liabilities or discrepancies. Always cross-check with your Form 26AS for accurate TDS details.
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