How to Include Mid-Year Joiner's Previous Income in Form 16? Need Urgent Help!

Hello everybody,

I wanted to know how to enter the salary income of an employee if he joined our organization in between the financial year. For example, if an employee joins in Nov09 and until then, he was working with some other company, how do we include his income from his previous employment in Form 16? How do we show his income, PF, TDS, and other perks in our Form 16? Is it compulsory to show this information or what should be done? Please reply urgently.

Dear Naamit,

The answer to your last question is NO, it is not compulsory to show. But if you want to add his last earnings for the purpose of TDS, you have to give him Form No-12B at the time of his joining (in case Form-16 is not available for last earning proofs) to declare his last earnings, as prescribed by the government.

Question No -2

Without declaration of his last income in the above said form, you cannot issue him Form No-16 for the full financial year (i.e., 1st April to 31st March). You can issue Form-16 from his Date of Joining to 31st March only. If he/she furnished all earnings details of the previous employment in Form-12B, you can assume his declaration for the purpose of the full financial year (i.e., 1st April to 31st March). However, the form should be duly attached by his last employer. At the time of his full and final settlement, his last employer will issue him Form-16 until his last working month.

I hope this information helps you.

Regards,
Ravi

Please tell me, how form 2 & form 16 are different from each other? Form 2 is used as a nomination form for new joiners, I guess.

Please help.

Regards