Must Do Things for Job Changers Worked in Multiple Organizations within a Financial Year

Often many job holders forget to obey completely with the income tax return filinglaws due to mere ignorance or unawareness. Often employees change jobs within a financial year for multiple times and thus forget to include their income from the old jobs. Income tax is meant to be paid for the income generated throughout the year, not only for the current job. While making tax filing online, it is mandatory that one must mention all the income that has been earned throughout the year.

In India, the exemption made for paying tax is up to 2.5 lakhs and when one changes job multiple times in year, the recent employer file for the exemption without taking the old income into account during income tax return filing.However, there is no way to hide this discrepancy for long time as it comes forward when one files for tax returns. Submission of more than one Form 16 will get the basic exemption only and that too for one time. Therefore, not paying tax for the old job during tax filing online will lead to a delayed tax reporting for that old income. This will result in paying penalty for that which will be according to the normal late penalty guidelines. The penalty guidelines according to Income Tax Laws states that any tax amount that exceeds Rs 10,000 is 1% interest rate per month of the total amount of tax to be paid.

It is a common mistake that many employees do while income tax return filing during June-July and forget that there is no way to hide from IT department. If tax has been deducted from the previous income than it will be clearly visible in the Form 26AS and will be noticed by the computerized scrutiny system. And such incident will deliver a tax notice to that individual. Therefore, it is advisable that you must report your current employer about old income during tax filing online so that TDS get cut accurately as stated in the laws.

Also Read : Clubbing Provision to Save Income Tax through Family Investments