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52. What Should You Do In Case Of Receipt Of Salary From Two Employers

This is a general query from many readers who have received salaries from two or more employers during the year. The I T Act provides clear provision and duties of the , both the employees and employer in those types of cases. Rule 26A of I T Rule takes care of such cases. The rule is given below

26A. (1) The assessee may furnish to the person responsible for making the payment referred to in sub-section (1) of section 192, the details of the income under the head Salaries due or received by him from the other employer or employers referred to in sub-section (2) of that section and of any tax deducted at source from such income in Form No. 12B

(2) The person responsible for paying any income chargeable under the head Salaries shall furnish to the person to whom such payment is made, a statement giving correct and complete particulars of perquisites or profits in lieu of salary and the value thereof in,

(a) relevant columns provided in Form No. 16, if the amount of salary paid or payable to the employee is not more than one lakh and fifty thousand rupees; or

(b) Form No. 12BA- if the amount of salary paid or payable to the employee is more than one lakh and fifty thousand rupees, which shall accompany the return of income of the employee.

Explanation : Salary for the purposes of this rule shall have the same meaning as given in rule 3.

So, following procedure should be followed

1. Give to your new employer details of income received from previous employer in Form 12 B.

2. The new employer would take note of Form 12B to arrive at estimated income and then deduct the tax at source .