CA.Varalakshmi.M (Manager-Finance) (482 Points)
03 December 2012Hello Every One,
suppose an employee joins with an organisation after Sep and employee is not furnishing form 12B ,previous employer might have deducted TDS after considering basic exemption limit.
As employee is not providing details ,do current employer consider basic exemption limit again ?
What are the consequence as per provision if current company deduct TDS after considering basic exemption limit....
Giridhar S Karandikar
(Team Lead)
(7548 Points)
Replied 03 December 2012
Employee is requried to furnish the current employer the details of the salay received from the previous employer. The current employer will consolidate the previous salary & current salary..If any TDS was being made by teh previous employer then the current employer would consider that while computing the taxable salary & deduct balance tax in equal installments.
If the employee doesn't furnish the details of the previous employer to the current employer then hte currnet employer will deduct tax according to the salary by it to the employee & deduct tax accordingly. The employee while assessing his income will be requried to pay tax alongwith interest.
Dipjyoti Majumdar
(CA in service & CS. dipmaj@ rediffmail.com )
(3468 Points)
Replied 04 December 2012
In this case you should not consider the investments made by him before joining your organisation also under section 80C or whatever. consider the taxable salary from your company from Oct till March and expenditures/investments made during that period only with basic exemption limit.
CA.Varalakshmi.M
(Manager-Finance)
(482 Points)
Replied 04 December 2012
@ Dipjyoti Majumdar
With Basic exemption limit means ,do we need to consider exemption limit of 2,00,000/- again or do we need to calculate tax on each single penny we pay?
Dipjyoti Majumdar
(CA in service & CS. dipmaj@ rediffmail.com )
(3468 Points)
Replied 04 December 2012
Consider 200,000/-. The word 'again' does not bear any relevance beacuse from your angle, you are giving him only once.
It is his headache if he would suppress his previous employer's salary paid to him with / without TDS and/or investments made by him from income from his previous employer.
Regards,
CAclubindia
