Tax calculation if worked in two companies in one financial year.

I joined a new company in mid of the financial year 2012-2013 (october) . Will I be taxed in my previous company if my total earning from the same is less than 2 lakh till last working day ?

asked Jan 09 '13 at 15:15 by nandu shekhar 1112

Employer deduct TDS considering whole year's income. Say if you earn 30,000 per month, Employer would compute tax on 3.60 lakh and divide into 12 parts for TDS deduction.

Once you resign from company, they would only consider amount they have paid to you till that month in FY, compute taxes and deduct if any remaining after earlier TDS. So even if they paid you less than 2 lakh in FY, as taxes may be already deducted as TDS, they cannot rollback same. But they they should not deduct more taxes once you resign.

Now coming to question whether you would be taxed for income from previous employer? You need to pay taxes on whole year's income. Tax is always computed on total year's income. You would need to add income from both employers and compute tax. If any tax is pending after TDS, you would need to pay yourself.

answered Jan 09 '13 at 20:31 by Pankaj Batra 5.2k320


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Asked: Jan 09 '13 at 15:15

Seen: 4,037 times

Last updated: Jan 09 '13 at 20:31