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?
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.,
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?
CAclubindia
