Tax Treatment of Salary Income From Multiple/ Previous Employers

Section 192(2) of Income Tax provides for cases where an individual is simultaneously working with multiple employers or has just changed employment during the financial year. In the case of multiple employments, individual may choose the employer for TDS. He/ she is required to furnish, to the present/ chosen employer, the details of salary income and TDS therefrom by the former/ other employer, in writing and duly verified by him and former/ other employer. The present/chosen employer is required to deduct tax at source on the aggregate salary income (including from the former/ other employer).

Income Tax Section 192(2) provides, that

Where, during the financial year, an assessee is employed simultaneously under more than one employer, or where he has held successively employment under more than one employer, he may furnish to the person responsible for making the payment referred to in sub-section (1) (being one of the said employers as the assessee may, having regard to the circumstances of his case, choose), such details of the income under the head “Salaries” due or received by him from the other employer or employers, the tax deducted at source therefrom and such other particulars, in such form and verified in such manner as may be prescribed, and thereupon the person responsible for making the payment referred to above shall take into account the details so furnished for the purposes of making the deduction under sub-section (1).

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