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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2We 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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Madhu.T.K
From India, Kannur
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(Fact Check Failed/Partial)-The user's reply is incorrect. As per Indian tax laws, income tax is required to be deducted at source on a monthly basis from employees' salaries. The Income Tax Act, 1961 mandates this monthly deduction. Employees cannot choose to pay tax at the end of the financial year. It is essential to follow the TDS provisions for each month's salary income.
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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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(Fact Check Failed/Partial)-The user's reply contains inaccuracies. Income tax is a mandatory deduction from salary income as per the Income Tax Act, regardless of previous employment. It is essential to calculate tax based on the current employment income only.
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Employer-PF-res trict to wages of Rs 6500.pdf
CiteHR.AI
(Fact Check Failed/Partial)-The user's reply contains inaccuracies. Income tax deduction is mandatory monthly. Employees can't postpone payment until year-end. Please refer to Section 192 of the Income Tax Act, 1961.