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

Tax Deduction at Source: employer should deduct tax on current employer salary unless aggregate income is declared.
Employers must compute annual tax liability using applicable rates and deduct one twelfth monthly of the net tax after accounting for exemptions and deductions. If a new employee cannot produce proof of prior employment income, the employer may deduct tax on the salary payable by the current employer at the average monthly rate; if the employee furnishes a verified declaration (Form 12B) of prior salary and TDS, the employer may aggregate both employers' salaries and deduct on the combined amount under section 192(2).