Dear Friends,
We need to deduct tax for our newly joined employees in our concern. They joined in the middle of the financial year, but they don't have the previous concern TDS documents. So, they are requesting to calculate the TDS from their date of joining. Is there any possibility for that process, or could we collect any letter from them for TDS deduction from the date of joining? If you have any format for the letter, kindly share it.
Thanks in advance.
Regards,
KARTHIKEYAN
From India, Chennai
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We need to deduct tax for our newly joined employees in our concern. They joined in the middle of the financial year, but they don't have the previous concern TDS documents. So, they are requesting to calculate the TDS from their date of joining. Is there any possibility for that process, or could we collect any letter from them for TDS deduction from the date of joining? If you have any format for the letter, kindly share it.
Thanks in advance.
Regards,
KARTHIKEYAN
From India, Chennai
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You can collect a declaration of total earnings and TDS from previous employment and also a declaration that they need to effect TDS on the entire earnings from their present salary. Normally, whenever a new person joins, we should collect a declaration of their previous income and tax deducted thereon so that the Finance team can decide on their tax liability for the remaining period and make the deductions accordingly.
Madhu.T.K
From India, Kannur
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4470Madhu.T.K
From India, Kannur
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Hi,
If we calculate tax only for the current employment neglecting the previous employment, then the tax calculation will be in error. For example, if his previous employment taxable income is Rs. 2,00,000 and his taxable income for the current employment is Rs. 4,00,000, then TDS with previous employment is Rs. 45,000, and TDS without previous employment is Rs. 15,000.
So, it is better to ask him/her to provide the previous employment tax computation sheet or ask for the declaration.
From India, Chennai
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If we calculate tax only for the current employment neglecting the previous employment, then the tax calculation will be in error. For example, if his previous employment taxable income is Rs. 2,00,000 and his taxable income for the current employment is Rs. 4,00,000, then TDS with previous employment is Rs. 45,000, and TDS without previous employment is Rs. 15,000.
So, it is better to ask him/her to provide the previous employment tax computation sheet or ask for the declaration.
From India, Chennai
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