Hi all, I need some help with dual employment scenarios. I am a full-time working professional with Company A. I have an opportunity to work with Company B as well. Both offer me different timings, so there is no issue with timing. However, here is the catch: Company A deducts PF, Medical, and TDS, but Company B only deducts a 10% TDS flat rate, with no other deductions.
Return Filing in Dual Employment
So, my question is: how will my return filing happen in this case? Also, can Company A get to know about my employment with Company B due to the TDS clash? Kindly help ASAP.
From India, Agra
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Return Filing in Dual Employment
So, my question is: how will my return filing happen in this case? Also, can Company A get to know about my employment with Company B due to the TDS clash? Kindly help ASAP.
From India, Agra
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Form 16 and TDS Deduction
The company will generate Form 16 as per TDS deduction, and that will reflect in Form 26AS, which can be accessed by PAN holders only. Due to TDS deduction at two different sources, I don't feel either of the companies will know.
From India, Bangalore
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The company will generate Form 16 as per TDS deduction, and that will reflect in Form 26AS, which can be accessed by PAN holders only. Due to TDS deduction at two different sources, I don't feel either of the companies will know.
From India, Bangalore
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Dear Member,
There are two aspects of your query:
Consequences of dual employment
1. What could be the consequences if Company A knows about your dual employment: In my opinion, if you are not misusing resources, data, connections, and not violating the confidentiality related to Company A, you should check if any confidentiality or dual employment (or part-time extra work) clause is mentioned in the appointment letter or specifically mentioned in any policy. If there is no such point, then it should not be objectionable to Company A. Ideally and ethically, you should inform Company A and B about your dual employment.
ITR filing status
2. What will be the ITR filing status: Based on taxable income (calculated on the basis of investment declaration, deductions, and exemptions), Company A will deduct TDS. However, in Company B, you are working as a professional on which a constant TDS is deducted at 10%. When submitting ITR, you have to add Company B income under "Income from Business and Profession." After combining the income, you have to check under which slab your income is taxable (5%, 20%, or 30%). After adjusting the Company B TDS, you have to pay income tax on the balance income. If, after combining both incomes, the payable tax is less than 10%, you will get a refund (as already 10% TDS is deducted).
Since you may not be well aware of the process and it is a little difficult, in my opinion, you should seek help from a professional who will properly file your ITR.
Hope the above will clarify your doubts. Seniors can suggest more inputs.
From India, Delhi
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231There are two aspects of your query:
Consequences of dual employment
1. What could be the consequences if Company A knows about your dual employment: In my opinion, if you are not misusing resources, data, connections, and not violating the confidentiality related to Company A, you should check if any confidentiality or dual employment (or part-time extra work) clause is mentioned in the appointment letter or specifically mentioned in any policy. If there is no such point, then it should not be objectionable to Company A. Ideally and ethically, you should inform Company A and B about your dual employment.
ITR filing status
2. What will be the ITR filing status: Based on taxable income (calculated on the basis of investment declaration, deductions, and exemptions), Company A will deduct TDS. However, in Company B, you are working as a professional on which a constant TDS is deducted at 10%. When submitting ITR, you have to add Company B income under "Income from Business and Profession." After combining the income, you have to check under which slab your income is taxable (5%, 20%, or 30%). After adjusting the Company B TDS, you have to pay income tax on the balance income. If, after combining both incomes, the payable tax is less than 10%, you will get a refund (as already 10% TDS is deducted).
Since you may not be well aware of the process and it is a little difficult, in my opinion, you should seek help from a professional who will properly file your ITR.
Hope the above will clarify your doubts. Seniors can suggest more inputs.
From India, Delhi
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