1 — Salary from previous Employer no.1
2 — Taxable Salary from Employer no.1 and Employer no.2
Example (see the Form-16):
Salary from Employer 2
= Income from head 'Salaries' - Salary from Employer 1
= 527414 - 375300
Case 1: You did not report old Salary to new Employer
When you report incomes separately, they may each be taxed at a lower rate.
You may fall in a different tax slab.
Case 2: You got an 80C Deduction twice
Both employers may have given you the benefit of 80C deduction on the salaries.
The deduction can be claimed only once.