Many employees provide their income other than income from salary to their employer company to deduct tax thereon. Every time company, to ease its employees, deducts tax on other income. When it does so, it faces some issues like mismatch of total tax deducted and tax paid reflected in Form 16 and 24Q.    In course of providing ease to employees, employers have to go through intimation and demand process. Is it fair for companies? When such rules are framed then forms should also comply with those rules. Due to this, the question arises that shall companies deduct tax on Other Income of its employee as there is impact on tax return. Section 192 of the Income Tax Act, 1961 provides that every person responsible for paying any income which is chargeable under the head ‘salary’ shall deduct income tax on the estimated income of the assessee under the head salaries. Section 192 (2B) deals with the assessee who receives any income chargeable under the head “Salaries” has, in addition, any income chargeable under any other head of income (not being a loss under any such head other than the loss under the head “Income from house property”) for the same financial year. The assessee may send the details of other income to the employer and thereupon the person responsible to deduct tax shall take— (i)  Such other income and tax, if any, deducted thereon; and (ii) The loss, if any, under the head “Income from house property”, Provided that this sub-section shall not in any case have the effect of reducing the tax deductible except where the loss under the head “Income from house property” has been taken into account, from income under the head “Salaries”. Until this point, we all are very comfortable with these provisions. The next step after deducting and depositing the deducted step is entries in Form 24Q and Form 16. Here, we all must have faced issues regarding entries of TDS amount in above-mentioned forms. The issue what we are discussing about is that in both Form 16 and Annexure 2 in Form 24Q for the last quarter, the details of Other Income can be mentioned, but there is no provision to show details of TDS on Other Income. Due to this, in both Form 16 and Form 24Q (fourth quarter), it appears as there is a shortfall in tax deducted by the employer while in reality it is not the case. Let us understand this with a practical case: Mr. A has taxable salary of Rs. 10lakhs and other income of Rs. 5lakhs. TDS deducted on other income is Rs. 50000 i.e., 10% on 5lakhs. Now, total income is Rs. 15lakhs and tax payable is Rs. 275000. Employer deducts tax on salary and considers TDS on other income. Thus, employer will deducts tax of Rs. 225000. As per Part B of Form 16, Tax Payable shall be Rs. 275000. Now, as per Part A of Form 16 which can be downloaded from the Traces site shall show Rs. 225000 as tax deducted and remitted. There will be difference of Rs. 50000. This is due to the Part A document downloaded from the Traces site contains only the TDS deducted/remitted by the employer and does not include the TDS on Other Income. Form 16 and Annexure 2 of Form 24Q (fourth quarter) does not contain any option to show TDS deducted on Other Income. If Department go through Form 24Q (fourth quarter), it will not be able to figure out the reason for difference in Part B of Form 16 and the Tax deducted/remitted figure in Part A. This may create confusion, as it seems from the Forms that there is shortfall in deduction of tax on other income. In such case, intimation and demand may be raised. This may lead to unnecessary harassment to deductor. Thus, Income Tax Department shall revise the specified forms for ease of taxpayers.  ___________________________________________________________________________________________________