Please suggest what should be done if an employee who has joined in the middle of the financial year does not declare the income earned and TDS deducted by the previous employer. Does the liability for tax deduction fall on the current employer or the employee?
Regards,
Veena
From India, Hyderabad
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Regards,
Veena
From India, Hyderabad
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TDS Liability and Employer Responsibility
TDS liability does not fall on the current employer. As per the Income Tax Act, it is the duty of the employer to deduct and pay TDS for the employee for the period he/she has worked in the company. In most cases, the company starts deducting advance tax based on the investment details provided by the employee during the year. Before the end of the financial year, they must provide evidence of the same. You can still request the employee to produce proof of their last earned salary and proceed accordingly.
Regards,
Jitu
From India, Ahmadabad
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2TDS liability does not fall on the current employer. As per the Income Tax Act, it is the duty of the employer to deduct and pay TDS for the employee for the period he/she has worked in the company. In most cases, the company starts deducting advance tax based on the investment details provided by the employee during the year. Before the end of the financial year, they must provide evidence of the same. You can still request the employee to produce proof of their last earned salary and proceed accordingly.
Regards,
Jitu
From India, Ahmadabad
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Previous Employer.xls
Declaration(For -Unexempted-Of- Previous-Employ ment-Trust)Form -11.doc