Can I Use Previous Salary Details for T.D.S. Calculation for a New Employee?

Hi all,

Please help me. Mr. X has joined my company on Aug-07. I am going to calculate the T.D.S. salary for him. Before that, the previous company has provided me with the salary details from Apr-07 to July-07. Can I use that salary for T.D.S. calculation or not?

Please help me.

Thanks in advance,

Jaga.G

Dear All,

Adding to Jagan's posting, I am also having doubts on TDS calculations. Whether the associate submits their tax returns, whether a part of the TDS amount is returned or not, remains unclear to me. I would appreciate anyone's help in providing clarity on the topic.

Regards,
Shanmugam
Email: Shanmugammba@gmail.com

Hi,

You can use your previous employer's income to compute taxes. You need to ask your previous employer for Form 16 for the period worked, or you can request the Income Tax computation statement from them after your settlement. You need to obtain four things from them:

1) Salary after Section 10
2) Profession Tax
3) Provident Fund
4) Income Tax

I hope this clarifies the process.

Thanks and regards, Navroz
+91 981 981 4336

Hi Jaga,

You are not clear. Had his former employer deducted TDS? On what basis was the TDS calculated by that employer? Whether the TDS deducted is more than what needs to be deducted for 3 months.

Priya Maran G

Dear Priya,

As explained by Navroz, you need to account for the points mentioned by him. His "INCOME FROM PREVIOUS EMPLOYER" shall be the income after deductions under sec 10 i.e., HRA, LTA, Medical, Conveyance. You need to add up this income to his present income for this financial year in the present company. On the total income, calculate the proportionate tax arrived. On the total tax arrived, subtract what has already been paid by the employee in his previous employment. On the remaining amount, distribute the same till March in equal installments.

The PF already deducted by the previous employer will form part of the Investments under Chapter VI (80C). The point to keep in mind is that the employee should not take benefit of Investments for 1 Lakh (Chapter VI) at both organizations; otherwise, he will have to pay a significant tax when filing his returns for the year.

Let me know if I can be of any further help to you.

Diwakar