Hi,
I would like some help with my income tax settlement for this financial year. I have been working for company A from April 2006 until August 2006, during which IT was deducted at source. My package at that time was 3.2L per annum. I resigned from company A and took up an offer with company B towards the end of December. Meanwhile, I have not been employed anywhere. My average pay now is 4L per annum.
How should I go about filing my tax returns? My company's accountant said that since my income for these three months would fall under 1L, I would not need to pay any tax for this period, but I am not too sure about this.
Furthermore, what is the procedure for filing the tax returns? Can I do it online, or would I need to get the help of a tax consultant?
Thanks,
J
From India, Bangalore
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I would like some help with my income tax settlement for this financial year. I have been working for company A from April 2006 until August 2006, during which IT was deducted at source. My package at that time was 3.2L per annum. I resigned from company A and took up an offer with company B towards the end of December. Meanwhile, I have not been employed anywhere. My average pay now is 4L per annum.
How should I go about filing my tax returns? My company's accountant said that since my income for these three months would fall under 1L, I would not need to pay any tax for this period, but I am not too sure about this.
Furthermore, what is the procedure for filing the tax returns? Can I do it online, or would I need to get the help of a tax consultant?
Thanks,
J
From India, Bangalore
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Dear Johnny,
I will try to answer your question, although the situation explained by you is not very clear. Income tax is payable on yearly income (no part-period based assessments). Income Tax is payable on net taxable income for the whole year, which means income from the first employment, income during a no-job period, and income from current employment.
Looking at the figures given by you, you will have a tax liability and should plan tax-saving investments to save tax. Take Form 16 from both employers and file your return. The last date for return filing will be 31 July. The return is to be filed in paper format in any case; yes, there is online filing available. You may visit incometaxindia.gov.in. You must have a PAN number if there is TDS deduction by any of your employer(s).
I hope this satisfies your query.
Thanks,
Pankaj Patodi
From India, New Delhi
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3I will try to answer your question, although the situation explained by you is not very clear. Income tax is payable on yearly income (no part-period based assessments). Income Tax is payable on net taxable income for the whole year, which means income from the first employment, income during a no-job period, and income from current employment.
Looking at the figures given by you, you will have a tax liability and should plan tax-saving investments to save tax. Take Form 16 from both employers and file your return. The last date for return filing will be 31 July. The return is to be filed in paper format in any case; yes, there is online filing available. You may visit incometaxindia.gov.in. You must have a PAN number if there is TDS deduction by any of your employer(s).
I hope this satisfies your query.
Thanks,
Pankaj Patodi
From India, New Delhi
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Hi Pankaj,
Many thanks for your reply. I will try to make my question a bit clearer with some real figures.
I was with company A from April 2006 to August 2006. They have provided me with a tax statement for this financial year.
Taxable income for this period is 1,20,000.
Gross taxable income is 1,34,000.
The total tax payable is calculated as 2,400.
TDS is 16,300.
So the refund right now is 13,900.
From September 2006 to mid-December 2006, I was without a job and had no other sources of income.
I have been with company B from mid-December 2006 to the present. My current CTC is 4L per annum (PF comes to 1.2k, HRA 4k). How should they go about calculating the TDS at this place? The accountant here said that no tax need to be deducted for the current month until he can work this out.
Furthermore, are there any more documents that I would need from my previous employer? They have only sent me a tax statement. When do I get the Form 16 from them? Will I need two different Form 16's from both my employers?
Thanks,
J
From India, Bangalore
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Many thanks for your reply. I will try to make my question a bit clearer with some real figures.
I was with company A from April 2006 to August 2006. They have provided me with a tax statement for this financial year.
Taxable income for this period is 1,20,000.
Gross taxable income is 1,34,000.
The total tax payable is calculated as 2,400.
TDS is 16,300.
So the refund right now is 13,900.
From September 2006 to mid-December 2006, I was without a job and had no other sources of income.
I have been with company B from mid-December 2006 to the present. My current CTC is 4L per annum (PF comes to 1.2k, HRA 4k). How should they go about calculating the TDS at this place? The accountant here said that no tax need to be deducted for the current month until he can work this out.
Furthermore, are there any more documents that I would need from my previous employer? They have only sent me a tax statement. When do I get the Form 16 from them? Will I need two different Form 16's from both my employers?
Thanks,
J
From India, Bangalore
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Dear Johnny,
To clarify further, you will receive two Form 16s: one from your earlier employer and another from your current employer. Please submit a copy of the statement received from your earlier employer to the new employer and request them to consider the income as well as the tax deducted by the earlier employer. No more documents are needed from the previous employer, except the Form 16, which they will issue in due course.
I hope this satisfies your query.
Pankaj Patodi
From India, New Delhi
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To clarify further, you will receive two Form 16s: one from your earlier employer and another from your current employer. Please submit a copy of the statement received from your earlier employer to the new employer and request them to consider the income as well as the tax deducted by the earlier employer. No more documents are needed from the previous employer, except the Form 16, which they will issue in due course.
I hope this satisfies your query.
Pankaj Patodi
From India, New Delhi
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Income tax and form 16.xls