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Section 80c-ppf-section 192 tds on salary

Dipjyoti Majumdar (CA in service & CS. dipmaj@ rediffmail.com ) (3468 Points)

16 November 2012

I am employed with Company A from April to June. I deposit PPF of 1 lakh and take deduction under section 80C for the purpose of tax deduction at source on salary under section 192 from employer A is concerned.

I join Company B from July and also show them the PPF deposit memo and avail deduction under section 80C for section 192 purposes from salary paid by Company B.

Is this allowable or not allowable. If not where is the flaw. It is different matter that ultimately I have to pay self assessment tax at the return filing time on combined income.

But what is the position as far as TDS by employers is concerned.

Regards,

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1 Replies

U S Sharma (glidor@gmail.com) (21063 Points)
Replied 16 November 2012

you availed 80C from employer A, that is fine, provided the payment is made within the period of apr-june.

again you shown that memo to employer B and trying to avail the same?

now the status .....................employer B will ask you the status of form 16 from A, and he will add the taxable portion therein , and would consider the 80C exausted there.

if found that you are making tricks, they will consider that your basic exemption limit and concessional slab is over at A and would deduct flat @ 30%

if the accounts department works on micro factors then he has to club both the 16A of A and B then fix the taxability, but now a days nobody works on it, and fix his own liability only, and issue form 16A for his own part only,

BUT, producing the PPF slips of old dates, when you were not employed in B, for making computation of tax under B, may drag you to making wilful false declaration.

balance you have to club both 16A and pay tax, and file return by self.