Q4.
A person received monthly salary of 60000 pm from April to Dec in A ltd.On 1 Jan he left Altd and joined B Ltd @ 65000 pm.Calcuate TDS to be deducted by Altd and B ltd?
View answer
There can be 2 cases
- Details of Previous Company given to new company
- Details of Previous Company not given to new company
Details of Previous Company given to new company
| TIME PERIOD | APRIL - DEC | JAN - MAR |
| MONTHLY SALARY | 60000 | 65000 |
| ANNUAL SALARY | 720000 | 735000 |
| LESS :- STANDARD DEDUCTION | 50000 | 50000 |
| NET ANNUAL INCOME | 670000 | 685000 |
| TAX | 46500 | 49500 |
| REBATE | 0 | 0 |
| NET TAX | 46500 | 49500 |
| CESS 4% | 1860 | 1980 |
| TAX+ CESS | 48360 | 51480 |
| MONTHLY TDS | 4030 | 5070 |
| NET SALARY | 55970 | 59930 |
Salary for Old Co
(60000*12=720000)
Old company will assume employee will continue to work through out the year.
Salary for New Co
(60000*9+65000*3=735000)
We will take old company salary also into consideration.
WORKING NOTE FOR TDS
| PARTICULAR | AMOUNT |
| TOTAL TAX | 51480 |
| TAX ALREADY DEDUCTED | 36270 |
| BALANCE TAX | 15210 |
| BALANCE MONTHS | 3 |
| TDS (BALANCE TAX/BALANCE MONTHS) | 5070 |
Details of Previous Company not given to new company
| TIME PERIOD | APRIL - DEC | JAN - MAR |
| MONTHLY SALARY | 60000 | 65000 |
| ANNUAL SALARY | 720000 | 195000 |
| LESS :- STANDARD DEDUCTION | 50000 | 50000 |
| NET ANNUAL INCOME | 670000 | 145000 |
| TAX | 46500 | 0 |
| REBATE | 0 | 0 |
| NET TAX | 46500 | 0 |
| CESS 4% | 1860 | 0 |
| TAX+ CESS | 48360 | 0 |
| MONTHLY TDS | 4030 | 0 |
| NET SALARY | 55970 | 65000 |
Salary for Old Co
(60000*12=720000)
Old company will assume employee will continue to work through out the year.
Salary for New Co
We will take old company salary as 0)
(65000*3=195000)
Note:-
This detail is to be given by every employee on joining in Form 12B
Q5.
A person received monthly salary of 60000 pm from April to Dec in A ltd.He remained jobless for 10 days and from 11 Jan he joined B Ltd @ 65000 pm.Calcuate TDS to be deducted by Altd and B ltd?
View answer
There can be 2 cases
- Details of Previous Company given to new company
- Details of Previous Company not given to new company
Details of Previous Company given to new company
| TIME PERIOD | APRIL - DEC | JAN - MAR |
| MONTHLY SALARY | 60000 | 65000 |
| ANNUAL SALARY | 720000 | 714032 |
| LESS :- STANDARD DEDUCTION | 50000 | 50000 |
| NET ANNUAL INCOME | 670000 | 664032 |
| TAX | 46500 | 45306 |
| REBATE | 0 | 0 |
| NET TAX | 46500 | 45306 |
| CESS 4% | 1860 | 1812 |
| TAX+ CESS | 48360 | 47118 |
| MONTHLY TDS | 4030 | 3616 |
| NET SALARY | 55970 | 61384 |
WORKING NOTE
Salary for Old Co
(60000*12=720000)
Old company will assume employee will continue to work through out the year.
Salary for New Co
(60000*9+65000*3-65000*10/31 = 714032)
We will take old company salary also into consideration.
| PARTICULAR | AMOUNT |
| TOTAL TAX | 47118 |
| TAX ALREADY DEDUCTED | 36270 |
| BALANCE TAX | 10848 |
| BALANCE MONTHS | 3 |
| TDS (BALANCE TAX/BALANCE MONTHS) | 3616 |
Details of Previous Company not given to new company
| TIME PERIOD | APRIL - DEC | JAN - MAR |
| MONTHLY SALARY | 60000 | 65000 |
| ANNUAL SALARY | 720000 | 174032 |
| LESS :- STANDARD DEDUCTION | 50000 | 50000 |
| NET ANNUAL INCOME | 670000 | 124032 |
| TAX | 46500 | 0 |
| REBATE | 0 | 0 |
| NET TAX | 46500 | 0 |
| CESS | 1860 | 0 |
| TAX+ CESS | 48360 | 0 |
| MONTHLY TDS | 4030 | 0 |
| NET SALARY | 55970 | 65000 |
Salary for Old Co
(60000*12=720000)
Old company will assume employee will continue to work through out the year.
Salary for New Co
We will take old company salary as 0)
(65000*3-65000*10/31=174032)