07-23-2011, 03:37 PM
<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by talha.moin</i>
<br />Hi student of law,
I have another query regarding the undertaking. We have now three cases
1. The employee submits tax certificate from previous employer
2. He states that he was unemployed.
3. He doesn't submit any declaration.
If he doesn't submit any declaration; can we calculate the estimated annual income by adding the average amounts earned in our organization?
In the case I presented above - the employee didn't submit any declaration that he was unemployed nor he submitted any tax certificate from previous employer. Now, are we justified to add 60,000 to his total annual income to calculate his tax slab?
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
Law has not required the employee anywhere to submit any declaration to employee regarding his previous employment. If law has not bound you to do certain thing then omission to do that cannot entail negative presumption.
Respectfully, I recalled a joke on your question, once a person claimed that they had telephone lines hundred years ago as they found wires on digging. The other claimed that they had wireless system hundred years ago because upon digging they found nothing.
So if your employee has not informed you anything about previous employment how can you presume that he was employed and if employed how can you presume that employment was for Rs.60,000. It may be 30k or 100k.
So there is nothing to make negative inference. On all counts of justice and good conscience, it will be a bad act. I always say it is easy to deduct tax but it is not easy to get refund for employee.
We know that it is not easy to obtain refund. Most of the people do not pursue refund because of this difficulty. So they part with their hard earned money. You are trustee of Salary of employee. Doing anything in excess of law that has impact of deriving employee of his due reward would be breach of trust, injustice and sin.
Employer is not bound by law to trace previous income of employee.
Deduct tax on the basis of knowledge that you know with certainty.
<br />Hi student of law,
I have another query regarding the undertaking. We have now three cases
1. The employee submits tax certificate from previous employer
2. He states that he was unemployed.
3. He doesn't submit any declaration.
If he doesn't submit any declaration; can we calculate the estimated annual income by adding the average amounts earned in our organization?
In the case I presented above - the employee didn't submit any declaration that he was unemployed nor he submitted any tax certificate from previous employer. Now, are we justified to add 60,000 to his total annual income to calculate his tax slab?
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
Law has not required the employee anywhere to submit any declaration to employee regarding his previous employment. If law has not bound you to do certain thing then omission to do that cannot entail negative presumption.
Respectfully, I recalled a joke on your question, once a person claimed that they had telephone lines hundred years ago as they found wires on digging. The other claimed that they had wireless system hundred years ago because upon digging they found nothing.
So if your employee has not informed you anything about previous employment how can you presume that he was employed and if employed how can you presume that employment was for Rs.60,000. It may be 30k or 100k.
So there is nothing to make negative inference. On all counts of justice and good conscience, it will be a bad act. I always say it is easy to deduct tax but it is not easy to get refund for employee.
We know that it is not easy to obtain refund. Most of the people do not pursue refund because of this difficulty. So they part with their hard earned money. You are trustee of Salary of employee. Doing anything in excess of law that has impact of deriving employee of his due reward would be breach of trust, injustice and sin.
Employer is not bound by law to trace previous income of employee.
Deduct tax on the basis of knowledge that you know with certainty.
