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Tax calculation for job changed in same financial year

Sandeep Kumar (Software) (34 Points)

17 February 2011

During financial year 2010-11, I have changed company (Company1 April-10 to June-10, Company2 July-10 to March-11). I have informed related to salary and TDS of company1 to company2. I am not sure if company2 has calculated TDS on basis of whole year income or not!!

Kindly advise if I need to contact a Charted Accountant before March-11 to make consolidated rough estimated of total income and pay renaming tax if required? Or Should I wait for Form 16 (provided by both companies in April-11) and then pay renaming tax (will I need to pay fine if tax be paid in April-11)?

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6 Replies

Pankaj Arora (Learner) (3134 Points)
Replied 17 February 2011

You should give form 12B to your new employer and they will deduct tds accordingly.

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Hemant (AM - IA/SOX) (78 Points)
Replied 17 February 2011

Hi,

Pankaj is pretty right. You need to furnished details with respect to prvious employment to your current employer. But hope you have declared all the deductions and exemptions during full and final settlement with your previous organisation.

Thanks

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Sandeep Kumar (Software) (34 Points)
Replied 18 February 2011

Thanks for reply.

I have declared 12B to new employer. But was not able to declare all deductions and exemptions during full and final settlement with my previous organisation (Is any issue with this? Do I need to tell my current employer to again look at TDS at their end?).

Also I have calculated tax in FY2010-11xls (all declaration, TDS's were mentioned) and as per that I need to pay 1,000 rs more.

Also, will I be getting 2 form16 or only 1 form16 by current employer is enough?

Again, Many thanks for your reply and time.

CMA.Subhabrata Pramanik (Cost Accountant) (69 Points)
Replied 18 February 2011

I suppose, whatever you hv done are ok at this point

You will get 2nos. Form 16

You need to calculate your final tax payable amount after considering your salary income as well as benefit of full & final settlement of Co.1 and your tax benefit investments. You till then wait for your Form16

For any amount of tax payable after 31.3.2011, a simple interest to be paid @ 1%p.m. u/s 234A

If tax payable is more than Rs.5000/- then interest u/s 234B & 234C also will apply other than 234A

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Sandeep Kumar (Software) (34 Points)
Replied 18 February 2011

Once I get 2 Form16's (In April-11) by both companies, then do I have to consult a CA to make a consolidated form 16 or can it be done by myself (Assuming here that format/column's provided by both companies are almost same so that I just need to add them)?

Thanks for your reply and time.