Skip to content

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

Kiran was employed by Alpha Ltd. from April to August 2026 and by Beta Ltd. from September 2026 to March 2027 (tax year 2026-27). Each employer deducted tax on salary. Which statement is correct under Rule 215 of the Income-tax Rules, 2026 (Form 130 issued by both)?

Each employer issues Parts A and B of Form 130 for its own period of employment, while Part C may be issued by each employer or only the last employer at the assessee's option, as provided in Rule 215(2).

  1. AOnly the last employer issues Parts A, B and C of Form 130 for the whole year
  2. BEach employer issues Parts A and B for the period of employment with it; Part C may be issued by each employer or by the last employer, at the assessee's optionCorrect
  3. CEach employer must issue Parts A, B and C separately, with no option
  4. DAlpha Ltd. issues Part A, and Beta Ltd. issues Parts B and C, for the whole year

Explanation

Rule 215(2) says that where an assessee has more than one employer in the year, each employer issues Parts A and B of Form 130 for the period of employment with it. Part C may be issued by each employer or the last employer at the assessee's option. The option stating only the last employer issues all parts ignores this split.

Did you get it right without looking?

One question tells you little. A timed set on Basic Concepts shows your real accuracy, how long you take and where you lose marks.

Practise Basic ConceptsFree diagnostic mock

More Basic Concepts questions