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CA Intermediate · Taxation · Tax Deduction or Collection at Source and Advance Tax

Anil Sharma joined Vihaan Ltd. on 1 October 2026. His estimated total salary for tax year 2026-27 (previous employer's salary plus the new employer's salary, furnished by him) gives a tax liability of ₹1,32,000 including cess. The previous employer had already deducted TDS of ₹36,000 on his salary up to 30 September 2026. Assuming no other TDS or tax paid, what monthly TDS should Vihaan Ltd. deduct from October 2026 to March 2027?

Vihaan Ltd. should deduct ₹16,000 per month. The total estimated tax is ₹1,32,000; deducting the ₹36,000 already withheld by the previous employer leaves ₹96,000, which is divided evenly over the six remaining months from October to March.

  1. A₹22,000
  2. B₹16,000Correct
  3. C₹11,000
  4. D₹8,000

Explanation

The employer takes the total estimated tax on aggregate salary, ₹1,32,000, and subtracts TDS already deducted, ₹36,000, leaving ₹96,000. This is spread over the remaining six months: ₹96,000 / 6 = ₹16,000. ₹22,000 ignores the previous employer's TDS, ₹11,000 spreads the full tax over 12 months, and ₹8,000 spreads the balance over 12 months.

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