TDS Liability of new employee joined middle of the financial year

[Pradeep Jain]

Dear Sir,

Let us know the what would be Income Tax liability ( TDS) of the employer in case of :-

- an employee joined the company middle of the year  say June'2012 and not in position to submit neither  the earning certificate  nor form 16 from the past employer.

Presently ,we have been calculating the TDS on the basis of notional annual income on the basis of current monthly payment.

What method to be adopted for appropriate payment of TDS on behalf of the employee to the Income Tax Department

Regards

Early response is highly appreciated.

AI Summary

New Employee TDS: Calculate Based on Current Salary, Report All Income in Tax Return, Consider Form 12-B Submission. A discussion on the tax deduction at source (TDS) liability for a new employee who joins a company mid-financial year without providing previous earnings or Form 16. The employer calculates TDS based on the current monthly salary, which may lead to excess deduction. It is advised to deduct tax only on the salary paid by the current employer and at an average monthly rate. The employee should report income from both employers in their tax return. Regarding Form 12-B, if submitted, the new employer should include the previous income in the total income computation for accurate TDS deduction.