seema (Associate Accounts Consultant) (122 Points)
12 January 2009How should be tax calculated of the employees who joined in mid of financial year? if saving should be consider if employee hasn't deposited any previous income detail? What should doif they intentionaly not depositing their pevious salary documents,
Mugdha
(Service)
(96 Points)
Replied 12 January 2009
Case 1: Where employee has furnished his previous salary details, you have to consider the same and deduct the TDS on salary.
Case2: Where employee has not furnished his previous salary details, consider that there was no previous salary and compute the TDS.
CA CS CIMA Prakash Somani
(Landmark Group)
(23502 Points)
Replied 12 January 2009
Basically this is the format of calculating Taxable Salary and TDS thereon
| Basic |
| Conveyance |
| HRS/HRA |
| Medical All/ Sundries |
| Variable All |
| Personal All |
| LTA |
| Misc |
| Special All |
| Food Coupons |
| Less : Deduction |
| Labor Welfare/ BFRF/Sundry |
| PF |
| Prof Tax |
| IT |
| Take Home |
| Tax Calculation |
| Salary |
| Less : Allowances Exempt |
| HRA |
| Conveyance |
| LTA |
| Food Coupans |
| Medical Re-imbursement |
| Less : |
| Profession Tax |
| Less : Deductions u/s 80C |
| PF |
| LIC |
| MF |
| Others |
| u/s 80D |
| Medical Insurance |
| Higher Insurance Premium |
| Taxable Salary |
| Income Tax |
| Cess |
| Total Tax |
| Tax Deducted till Date |
| Balance Tax to be Deducted |
| Monthly Tax |
Atul Kumar
(CA)
(504 Points)
Replied 12 January 2009
Where employee has not furnished his previous salary details, consider that there was no previous salary and compute the TDS accordingly.
seema
(Associate Accounts Consultant)
(122 Points)
Replied 14 January 2009
But what about savings that he claimed in last firm?????
Shudhanshu Agrawal
(Business)
(2570 Points)
Replied 14 January 2009
In such a case u can consider the savings according to his declaration upto the month of February...and ask the employee to furnish the related documents upto march.....if employee furnish the documents everything is fine.....but if he doesn't do so then u can consider his savings NIL at the end of year and at the time of finalization of TDS in the month of march deducte TDS considering savings upto the amount of documents furnished by the employee
Narendra kumar
(Account Executive)
(82 Points)
Replied 26 March 2009
| Originally posted by :seema | ||
| " | How should be tax calculated of the employees who joined in mid of financial year? if saving should be consider if employee hasn't deposited any previous income detail? What should doif they intentionaly not depositing their pevious salary documents, | " |
Narendra kumar
(Account Executive)
(82 Points)
Replied 26 March 2009
The tax laws cast on an employer the responsibility for calculating the tax payable by each employee on his income which needs to be deducted at source while paying salary every month. In the computation of taxable amount, several deductions and rebates have to be incorporated while determining the tax which has to be withheld from the salary of each employee.
In large organisations employing thousands of persons, a full-fledged department has to be set-up which virtually has to do the work of the Income Tax Department. Since employees are eligible to claim deduction and rebates permitted under various sections of the law, the question which generally arises is whether the employer can base the tax calculation for each employee on a claim or declaration made by an employee in respect of the rebates which he is entitled to claim under the law.
It is well-nigh impossible for an employer to scrutinise the documents, receipts and other pieces of evidence. Most companies and employers take a written statementor declaration signed by each employee who claims that he has made certain investments, for example, in the Public Provident Fund, National Savings Certificate, or has paid premium to Life Insurance Corporation or any other expenditure which qualifies for the rebate under Section 88 of the Income Tax Act, 1961.
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