How to Avoid Tax Surprises While Filing Your Income Tax Return
Have you recently switched your job? You’re not alone if you’ve been taken by surprise when filing your Income Tax Return (ITR) and discovered a higher tax liability than expected.
Most individuals assume their employers take care of all the tax calculations. But here’s the catch: when you change jobs, both your previous and current employers may unknowingly and having no other option, apply the standard deduction of INR 50,000 (old regime) or INR 75,000 (new regime) separately while deducting tax and uploading TDS return (Tax Deducted at Source).
As per Section 16 of the Income Tax Act, an individual is eligible for only one standard deduction per financial year. When both employers apply it separately, you might end up underpaying taxes. This discrepancy only comes to light when you sit down to file your ITR – and by then, you may have to pay additional tax along with interest for non-payment and late payment.
✅Avoid Hefty Tax with these steps:
🔶 Declare your income from your previous employer when joining a new company.
🔶 Submit Form 12B to your current employer – this helps them consolidate your income and deduct the right amount of TDS so that you'll be relieved from arranging funds for tax payments at the end.
🔶 Choose between old and new tax regimes wisely based on your deductions and exemptions.
🔶 Maintain a record of all your salary slips, Form 16s, and deduction proofs.
🔶 Consult us for mid-year tax planning and avoid last-minute burdens and tensions.
Tired of Tax Season Stress? Let’s Change That Today!
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- We specialize in tax planning and ITR filing that helps you stay compliant and stress-free. Whether you’ve switched jobs or have multiple incomes, we’ll ensure your taxes are optimized and filed accurately with maximum savings!
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