13 July 2011
Here is an assessee X. He worked in a company for three quarters & in the last quarter he worked in another company. Now while deducting his tax, both the companies provided the assessee with the exemption limits of rs. 1,60,000 and rs. 1,00,000 deduction u/s 80C.
Now please tell me what should be done and what should not be done.?
13 July 2011
Not an issue because both the companies had deducted the TDS as if he is working there only. So The employee had to file the Return of Income and adjust the TDS (of both companies together)against his tax liability for the relevant financial year. The second company where he had worked for 3 months (Q-IV) should have filed the declaration form with details of salary recd from the immediate previous employer.
CAclubindia
