The Hindu Business Line : Employer bound to consider previous salary for tax

DURING the financial year 2004-05, I worked with two employers. I was initially employed by a company and then later, during the year, shifted to another company. I have given the particulars of salary earned from my former employer to my present employer, duly signed by me, in the prescribed form 12B.

My employer, however, has not taken the same into account in deducting tax at source. My employer, therefore, states that the particulars of my income from my previous employer will not be incorporated in the Form 16 issued by him. Is this view correct?

Ramesh Salvi

Reply

No. Under Section 192(2) where an employee is in employment with more than one employer in a previous year, he may give the particulars of the salary of the other employer or employers to any of the employer of his choice and such employer is bound to take the same into account in determining the tax to be deducted at source.

It would not be open to an employer receiving such particulars in the prescribed form, not to take the same into account.

Your employer will, therefore, be bound to take the salary received by you from your former employer in computing the tax to be deducted and also incorporate the said particulars in the Form 16 to be issued by him.

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