Smooth tax filing after job changes

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Switching employers in the middle of a financial year quietly creates a tax gap. Each company applies the basic exemption and slab benefits separately, so both deduct less TDS than your combined salary actually warrants.

Collect Form 16 from both employers and add the salaries together before computing liability. Declare previous income to your new employer early, or set aside funds for the shortfall. Interest under Section 234B grows the longer the balance stays unpaid.

A job change improves your income but complicates your return. Approach tax filing that year with both certificates in hand and the shortfall already settled.

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