# Clarification on TDS Deduction for New Employee with Previous Salary Consideration **URL:** \ **Category:** Ask the Community\ **Created:** [December 6, 2024, 8:53am UTC](https://community.greythr.com/t/clarification-on-tds-deduction-for-new-employee-with-previous-salary-consideration/15981 "2024-12-06T08:53:54Z")\ **Posts on this page:** 5\ **Page:** 1
**Author:** ![afsal.cp](https://avatars.discourse-cdn.com/v4/letter/a/c37758/32.png) [@afsal.cp](https://community.greythr.com/u/afsal.cp)\ **Post date:** [December 6, 2024, 8:53am UTC](https://community.greythr.com/t/clarification-on-tds-deduction-for-new-employee-with-previous-salary-consideration/15981/1 "2024-12-06T08:53:54Z")
We recently onboarded a new employee mid-year with a salary package of 10 lakh per annum. Based on the salary paid by us, we believe TDS deduction is not required as it is less than 7 lakh. However, we have not collected details of his previous salary. If we consider his previous salary, TDS may be applicable. Could you please confirm whether it is necessary for us to collect his previous salary details and deduct TDS accordingly? ---
**Author:** ![mohanjacob](https://avatars.discourse-cdn.com/v4/letter/m/65b543/32.png) [@mohanjacob](https://community.greythr.com/u/mohanjacob)\ **Post date:** [December 6, 2024, 9:12am UTC](https://community.greythr.com/t/clarification-on-tds-deduction-for-new-employee-with-previous-salary-consideration/15981/2 "2024-12-06T09:12:10Z")
It is better to collect his previous salary otherwise he may have to pay tax at the time of filing his return showing the combined income apart from interest if any. ---
**Author:** ![Ananda](https://avatars.discourse-cdn.com/v4/letter/a/e99b99/32.png) [@Ananda](https://community.greythr.com/u/Ananda)\ **Post date:** [December 6, 2024, 10:13am UTC](https://community.greythr.com/t/clarification-on-tds-deduction-for-new-employee-with-previous-salary-consideration/15981/3 "2024-12-06T10:13:59Z")
If the previous employment income is not reported: 1. Standard Deduction Impact\*\*: The standard deduction will be applied in both employments, causing discrepancies and resulting in tax differences at the time of filing ITR. 2. Tax Calculation\*\*: In cases where tax is not deducted due to lower income in the current employment, the total income remains under-reported. This may lead to missed tax liabilities. 3. 26AS Reflection\*\*: Income needs to be accurately reported through the quarterly return to ensure it reflects correctly in the employee’s Form 26AS. If missed, the income may not appear, leading to compliance issues or unnoticed tax dues. ---
**Author:** ![SundarRajan](https://avatars.discourse-cdn.com/v4/letter/s/3bc359/32.png) [@SundarRajan](https://community.greythr.com/u/SundarRajan)\ **Post date:** [December 6, 2024, 10:42am UTC](https://community.greythr.com/t/clarification-on-tds-deduction-for-new-employee-with-previous-salary-consideration/15981/4 "2024-12-06T10:42:05Z")
Hi It is advisable to collect the previous salary details and understand tax implications before taking a call. It is your onus to ensure this is done. Either way when the employee files his tax returns under his PAN, his liability has to be borne by him. ---
**Author:** ![Sahana\_1](https://avatars.discourse-cdn.com/v4/letter/s/e5b9ba/32.png) [@Sahana\_1](https://community.greythr.com/u/Sahana_1)\ **Post date:** [December 6, 2024, 10:46am UTC](https://community.greythr.com/t/clarification-on-tds-deduction-for-new-employee-with-previous-salary-consideration/15981/5 "2024-12-06T10:46:09Z")
Know more about TDS for Indian Payroll - take up the course developed by greytHR Academy on Udemy - [TDS for Indian Payroll - For Professionals](https://www.udemy.com/course/tds-for-indian-payroll-for-professionals/?referralCode=AC50BCB657387F1853DF)