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CA Final · Direct Tax Laws & International Taxation · Basic Concepts

Anita was employed by Alpha Ltd from April to September and by Beta Ltd from October to March of the same tax year. Under Rule 215(2), which statement is correct about the certificates in Form 130?

Each employer issues Parts A and B of Form 130 for the period the assessee was employed with it. Part C may be issued by each employer or only by the last employer, at the option of the assessee, under Rule 215(2).

  1. AOnly the last employer, Beta Ltd, issues the entire Form 130 for the full year
  2. BEach employer issues Parts A and B for the period of employment with it, and Part C may be issued by each employer or by the last employer, at the option of the assesseeCorrect
  3. CEach employer must issue Parts A, B and C for its own period only, with no option
  4. DAlpha Ltd issues Part C and Beta Ltd issues Parts A and B for the full year

Explanation

Rule 215(2) says each employer issues Parts A and B pertaining to the period of employment with it. Part C may be issued by each employer or the last employer at the assessee's option. Option C ignores this option, and option A wrongly shifts everything to the last employer.

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