Opinion Of Eminent Legal Luminaries On Controversial Issues

How To Calculate TDS On Salary From More Than One Employer?

QUERY: What is the employers responsibility and liability in respect of employee joining employment in the middle of the financial year. The employee is unwilling to give details of salary and withholding tax from previous employment. Should the new employer consider the following while deducting the tax at source?

• Basic exemption limit

• Investments made during the previous year but prior to joining the employment.
ANSWER: To obtain, if employee furnishes, details of income under the head “salaries” due or received by him from the other employer or employers, the TDS and such other information as the employee may furnish in Form No. 12B.

– If employee is unwilling to give details of salary and withholding tax from other employment, then, the employer who is paying any income chargeable under the head “salaries” from the employment with him, should deduct TDS computed on the amount payable at the average rate of income tax computed on the basis of rates in force for the financial year in which the payment is made on the estimated income – u/s. 192(1).

– Yes

– No.

Posted in Income-tax

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