How do I deduct salary TDS for an employee who joined mid-year or had a previous employer?

Question

tdsguru.in (CA firm) · Accepted Answer

Ask the employee for previous-employer salary and TDS details in Form 12B; include them so the combined annual tax is deducted correctly and the year-end shortfall is avoided. When an employee joins mid-year, the new employer should obtain the previous employment's salary and TDS details (the employee declares these in Form 12B). The new employer then computes TDS on the combined annual salary. If the employee chooses not to disclose previous salary, the new employer deducts only on the salary it pays — which usually leaves a large shortfall and tax payable at filing. Collecting Form 12B up front prevents that surprise.