What if tax is not deducted from salary?

When your employer has not paid the TDS to the income tax department, the TDS would not be available against your PAN in your Form 26AS. If you take the tax credit for this amount, you will receive a notice from the income tax department for the mismatch in the TDS claimed and taxes paid.

Is it mandatory to submit previous employer income?

No, it’s not mandatory that you should report your previous employer salary income and TDS amount deducted out of it to your current organization. However, it’s always advised to report it to the current organization while joining the organisation or within a month of joining.

Is income tax directly deducted from salary?

Your employer deducts a portion of your salary every month and pays it to the Income Tax Department on your behalf. Based on your total salary for the whole year and your investments in tax-saving products, your employer determines how much TDS has to be deducted from your salary each month.

Is salary not received taxable?

Salary is assessed on accrual basis and not on receipt basis. Hence, unpaid salary will also be treated as income only. As per Section 15 of the Income Tax Act,1961 clarifies the year of chargeability of salary. Salary due in previous year is taxable even if not received.

What happens if I don’t submit Form 12b?

Form 12B contains all the key information like your employers’ PAN and TAN details, salary paid to you, the tax deducted, professional tax paid on your behalf, etc. In the case you don’t submit these details, both your past and the current employer will give you Form 16 and you will need to reconcile them.

Who is eligible for income tax?

Who are the Tax Payers? Any Indian citizen aged below 60 years is liable to pay income tax, if their income exceeds Rs 2.5 lakhs. If the individual is above 60 years of age and earns more than Rs 2.5 lakhs, he/she will have to pay taxes to the Government of India.

Who is exempt from paying income tax in India?

If your annual income does not exceed Rs 5 lakh, you are eligible for a tax rebate of up to Rs 12,500. Surcharge is applicable on annual incomes of Rs 50 lakh and above. The rates are: 10\% on income between Rs 50 lakh and Rs 1 crore.