TDS ON SALARY

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

03 June 2010 Hi,

Can you please tell in case employee joined during the FY then whose onus (Employee or Current Employer) is whether employee has recieved any salary from previous employer ?

CA Archana

CA Archana (Expert)
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03 June 2010 Ideally the employee should inform this to the new employer.so that the new employer can deduct TDS after taking care of the fact of earlier job and tax deducted by the previous employer.
If the the new employer is not being informed about the previous salary then he will deduct TDS after taking account of standard deduction again.......which will result into less TDS deducted and deposited.

So when the employee will file the return he will account for both the salaries and need to deposit the difference in tax.

Querist : Anonymous

Querist : Anonymous (Querist)

03 June 2010 yup i agree with you basically responsibility of Employee. However our Internal Auditor insisting it is the laibility of comapny to take declaration fron new employee.

Can you support your judgement by case alw or circular?

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CA Archana

CA Archana (Expert)
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03 June 2010 I dont have any case law in my knowledge but yes I know that companies ask for last salary drawn proofs to the employee.They also ask for such details from new employee.But as per me the liability remains with employee.

CA. Gurdeep Singh Chawla

CA. Gurdeep Singh Chawla (Expert)
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03 June 2010 CA. Archana ji there is no standard deduction from Income from salary.

CA Archana

CA Archana (Expert)
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04 June 2010 Thanks Gurdeep I wanted to say just the basic exemption limits....thanks for correcting me.

CA.Parsun Garg

CA.Parsun Garg (Expert)
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09 June 2010 I think its the responsibility of the employee to pay the correct tax on his income so he has to declare to the company because in case of default in paymnet of tax, only employee concerned will be penalised by the IT dept.