How to Handle TDS for a New Employee Without Previous Form 16 in Mid-Year?

Hi,

Can anyone help me out? An employee joined my organization on 5th October. He is eligible for TDS. He has not paid any tax in his previous organization, so he can't provide Form 16 to us. Now, in this situation, how do I need to compute tax for the financial year 07-08 for this particular employee?

1) Do not consider the past, just calculate based on what we pay him.
OR
2) Consider his previous compensation and present compensation to calculate tax for the total amount.

If I choose the first option, can I get the proofs of investments he made during April 07 - Sep 07... is that viable?

Thanks in advance,
Pradepa

You need to consider previous income as well. If Form 16 is not provided by the previous company, then ask for payslips.

Thank you.

Thank you, Sudha.

I consulted with an auditor. He says to get a declaration from the employee along with the pay slip.