TDS on salary

Er.SUNIL VASUDEVAN. M.Tech, LL (Querist) 30 September 2010 This query is : Resolved
A person resigns in October. Can the employer recalculate his annual income as salary X 10 months, work out the monthly deduction accordingly and adjust in the last two months pay?

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R.Ramachandran (Expert) 30 September 2010
Dear Sunil,
The employer is responsible to effect TDS based on the estimated income for the year. If the TDS was not being deducted on proportionate basis each month, he should deduct the same (on the basis of the total amount of salary paid by him during the financial year). Only after fully effecting the TDS from the last salary the balance amount if any has to be paid to the employee.

Er.SUNIL VASUDEVAN. M.Tech, LL (Querist) 30 September 2010
Dear Mr.Ramachandra,
Thanks for the reply. My question in specific is as follows
The employer deducted salary for 6 months on the estimated annual income. Now the employ resigns and gives 0ne months notice. His income for remining period of the year would be much less or NIL. Then the estimated annualinocme becomes much less.
Can the employer recalculate his annual income considering total as only the salary for the period he works for the company and avoid deduction in the salary for the monthhe is leaving the company?
A sample calculation is attached

pawan sharma (Expert) 30 September 2010
i do agree with Expers.

R.Ramachandran (Expert) 30 September 2010
Dear Sunil,
The entire salary amount upto the date of resignation has to be taken into account, the tax due on such income has to be calculated, and applicable tax amount has to be deducted from the salary by the employer. The employer is not concerned whether in future there will be any income or not. If there is any income after resignation, the new employer has to effect the TDS after taking into account the TDS already deducted by your earlier employer.