Your employer deducts TDS after providing the basic exemption of Rs 2.5 lakh and the deduction on the investment declaration made.
- You have to collate data from more than one Form 16 while filing return
- Your salary as well as structure of salary may change after job change
- Salary has to be adjusted for notice period pay, if paid by new company
If you have changed jobs during the financial year, filing your tax return for the year may be slightly complex. You have to collate data from more than one Form 16 to fill up the tax return form.
Your salary as well as the structure of the salary may change and if you don't take proper care, you may end up paying higher tax or availing higher deductions.
So to avoid these errors, you should keep following things in mind while filing your tax return.
Investment declaration duplication: As you have to provide your investment declaration to your employer to avoid TDS (tax deduction at source), it is possible that you might have claimed it twice after you change jobs. Your employer deducts TDS after providing the basic exemption of Rs 2.5 lakh and the deduction on the investment declaration made under various sections such as Section 80C and 24B (home loan interest). So if you forget to share the TDS details with the new employer, duplication of deduction benefit might happen. Or if you declared a higher investment amount then the actual made, you may end up paying lower taxes against your actual tax liabilities.
So you have to recalculate your tax liabilities and pay the tax at the time of filing of your return.
Notice period pay: If you don't serve the notice period, your company might deduct a part of your salary from your full and final amount. In some cases, the new employer compensates for the salary loss. In both the cases, your gross income has to be adjusted. You have to keep this in mind while filing your tax return.
Higher slab: If you change jobs, your income typically goes up. Therefore, if you had other incomes such as bank interest you have to be watchful. In case of interest income more than Rs 10,000 a year, banks deduct TDS @10 per cent. Higher income from you new job might have changed your income tax slab. In that case, you have to tax at a higher rate on the interest income.
Your salary as well as the structure of the salary may change and if you don't take proper care, you may end up paying higher tax or availing higher deductions.
So to avoid these errors, you should keep following things in mind while filing your tax return.
Investment declaration duplication: As you have to provide your investment declaration to your employer to avoid TDS (tax deduction at source), it is possible that you might have claimed it twice after you change jobs. Your employer deducts TDS after providing the basic exemption of Rs 2.5 lakh and the deduction on the investment declaration made under various sections such as Section 80C and 24B (home loan interest). So if you forget to share the TDS details with the new employer, duplication of deduction benefit might happen. Or if you declared a higher investment amount then the actual made, you may end up paying lower taxes against your actual tax liabilities.
So you have to recalculate your tax liabilities and pay the tax at the time of filing of your return.
Notice period pay: If you don't serve the notice period, your company might deduct a part of your salary from your full and final amount. In some cases, the new employer compensates for the salary loss. In both the cases, your gross income has to be adjusted. You have to keep this in mind while filing your tax return.
Higher slab: If you change jobs, your income typically goes up. Therefore, if you had other incomes such as bank interest you have to be watchful. In case of interest income more than Rs 10,000 a year, banks deduct TDS @10 per cent. Higher income from you new job might have changed your income tax slab. In that case, you have to tax at a higher rate on the interest income.
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