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TDS

11 February 2010

Dear all,

In my working co, in Jan-2010 we have newly appointed some employees is there, but they are all getting more than 18000 to 42000 salary but previosly employees working in other co but they not dedcuted any tds and also they giving salary through cash mode only...... and also one employee from Apr 09 to nov-09 worked in out of coutry.....so now how can i deduct tds to these employees...........................

Regards

Vijay

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4 Replies

Amir (Learner) (4016 Points)
Replied 11 February 2010

Dear Vijay,

No matter that prevous employer has deducted TDS or not u have to deduct TDS on the aggregate salary -by obtaining a declaration from employee duly certified by his previous employer.

The new sub-section (2) inserted in section 192 deals with situations where an individual is working under more than one employer or has changed from one employer to another. It provides for deduction of tax at source by such employer (as the taxpayer may choose) from the aggregate salary of the employee who is or has been in receipt of salary from more than one employer. The employee is now required to furnish to the present/chosen employer details of the income under the head “Salaries” due or received from the former/other employer and also tax deducted at source therefrom, in writing and duly verified by him and by the former/other employer. The present employer will be required to deduct tax at source on the aggregate amount of salary (including salary received from former or other employer). - Circular: No. 504 [F.No. 275/138/87-IT(B)], dated 8-2-1988.

In respect of the emplyee who was employed in Foreign country - Check whether his salary was taxable in India or not, depending upon his residential status..

Further, where employee is claiming that his earlier salary was not taxable, he should be asked to obatin a certificate u/s 197 from his AO

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vijaya kumar n (JOB) (488 Points)
Replied 11 February 2010

But they dont have any proof for getting salaries from the previous employee????????????? and getting salary through cash only..........and we also we cant get the correct information from them

praveen (Chartered Accountant) (6971 Points)
Replied 11 February 2010

i think a written representation from the workers would be enough for this matter.

manish (Article Assitant) (358 Points)
Replied 12 February 2010

Co is not liable for not deduct of tds of employee on that salary which was received by them from previous employee if that salary is received in cash mode. So co. can only take the written representation letter from employee and submit it with the return of tds for only giving the information of that income. it's more than enough for the co.