Transferred to a New Unit: How Does This Affect My Salary Tax and Deductions?

I have one query in my mind. I have been transferred from one unit to another unit within the same group. However, the location is different. I want to ask whether my salary is taxable, and if I want my salary not to be deducted, do I need to show my savings from the previous company or the current unit? As you must be aware, the last date for filing the IT Return is 31st March 2012.

Thanks in advance.

Regards

You can show in the present unit itself. Anyway, your combination of salary from the old unit and new unit will be shown in Form 16. So, you can show all your investments/payments according to various sections like 80C, 80D, 80G, etc., and submit the same to finance to get the maximum exemption from TDS.

Regards

Please ask your query clearly. If you are transferred within the same company, then there will not be any previous employer. If you joined a new task, then obviously you must submit your savings details to the new employer, and you can give a copy of the same to the previous employer so that they can incorporate it in your Form 16 too.

I also agree with Mr. Bhaskar. Transfer doesn't mean a change in employment but a change in the location of employment. You also have to admit that there is just a difference in location when you have been transferred from one unit to another.

Secondly, if you are transferred to another unit with a promotion and a salary hike, and now it becomes taxable income, you can consider investment/saving options as suggested by Mr. Shenbagarajan K.

I.T. Rules Consistency Across Locations

I.T. rules are the same for all locations. The last date for return filing is not correct as you mentioned.

Regards,
Pon

The reply given by Mr. Baskar is 100% valid and holds good for anyone. First of all, you have to make up your mind that you have to pay income tax for your income, so that you are helping our India to carry out all development processes. You can carry out the tax planning process and not engage in tax avoidance. If you are not paying the tax, then nobody will help you in the future from the clutches of the Income Tax Department. I wish you all the best in your life by paying eligible and correct tax.

Regards,
CA.V.Ravindran, Salem TN

Steps to Handle Taxation After a Transfer

Please follow the following steps:

1. Get confirmation about your transfer, whether it is to a different unit or just a location change. You can ask your HR or finance about the status of the unit as per the Income Tax Act (like having a different TAN).

2. If the answer to the above is that you have been transferred to another unit of the group, then you have to show all your investments to the employer you are currently employed with. Please take care of the HRA part, as this can be claimed and given only by the respective employer. I mean your present employer cannot allow the benefit of HRA for the tenure you were with your earlier organization. You need to submit the necessary documents to avail the HRA benefit from your previous employer/unit.

3. You need to report the earlier unit's income to the present unit to calculate and deduct the final tax on your income. In case you fail to report your earlier income to your present employer, you may have to pay tax with interest at the time of filing your individual return. It's always advisable to report all your income from different sources to the employer.

4. The last date mentioned by you may be to submit documents to your employer. The date for filing the Income Tax Return with the Income Tax authorities will be July 31st.

Hope this clarifies. Feel free to revert and keep posting.

Regards,
Anjani

I have gone through your query. Please remember that the IT Act does not relate to employers but to income. Regardless of whether you have been transferred or got a new job, you have to show the income received from both the units/organizations in your ITR. Of course, in support of the income from the previous employer, you have to attach Form 16.

Regards,
S.K. Johri