TDS Calculation for Previous Employment Case

Ask the Community Income Tax
1

Hello All,

  1. How is TDS calculated for employees joining in Feb or March month?
    Ex: Employee salary is 1,50,000/month?

  2. What if they do not provide salary slips of previous employer?

  3. What is Form12BB?

  4. I dont see anyplace in GreyTHR portal POI declaration to declare income from previous employer. It is there in IT Declaration but not POI

  5. Does all employee need to sign the Form12BB?

Thanks,

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Hi @sacchasona

Please find the below comments.

1.TDS will calculate based on employee total income for the financial year of the employees, If the employee joins mid of the year then tax will calculate and deduct for the remaining month in the financial year. In gerytHR, we have a provision to update the previous employment income so tax will adjust automatically based on the previous employment income and current income and deduct the tax accordingly.

2.Employee has to submit previous employment income, If the employee didn’t submit previous employer income in such case, if an employee falls under tax bracket then the tax will calculate and deduct based on the current salary, otherwise, it will not deduct. The employee may face an issue at the time of filing IT returns in case of a shortfall deduction in tax.

3.Form 12BB is a statement of claims by an employee for deduction of tax. With effect from 1st June 2016, a salaried employee is required to submit Form 12BB to his or her employee to claim tax benefits or rebate on investments and expenses. Form 12BB has to be submitted at the end of the financial year.

Form 12BB applies to all salaried taxpayers. Using Form 12BB, an employee has to declare the investments that they have made during the year. Documentary evidence of these investments and expenses has to be provided at the end of the financial year as well.

4.We have a provision to update the details in the POI declaration

5.Every salaried taxpayer has to submit Form 12BB

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Thanks @Chethanbn for very detailed explanation on this.

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4

HI,

Even I too have the same concern in our organization. Kindly share me a good solution for the same as early as possible.

Regards,
Kavya J
CAO

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Hi @Kavya

As said by Chethan. An employee needs to submit either a Form 12BB or Form 26AS, if any such proof with respect to previous employment is available the same we have a provision to update the details in the POI declaration section.