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In this article, we will discuss about multiple employers and how to calculate tax correctly in detail.
You are more likely to see a tax due at the time of filing when you’ve changed jobs even if TDS has been getting deducted each month. Here’s why:
| Income from INFOSYS(6 months) | Rs.3,50,000 |
| Income from WIPRO(6 months) | Rs.5,00,000 |
| Interest Income | Rs.10,000 |
| Total income | Rs.8,60,000 |
| Gross total income | Rs.8,60,000 |
| Total deductions under Section 80C | Rs.80,000 |
| Total taxable income | Rs. 7,80,000 |
Tip: Check both your Form 16s that you are getting all the deductions under Section 80C. If you’ve forgotten to submit investment proofs to either of the companies, you can claim them in your tax return directly. This is the income on which your tax must be paid. Going by the tax slab, the total tax incidence works out to Rs.83,430.
| 0- Rs.2,50,000 | No tax | |
| Rs.2,50,000- Rs.5,00,000 | 5% | Rs.12,500 |
| Rs.5,00,000 – Rs.7,80,000 | 20% | Rs.56,000 |
| Education cess + Higher education cess | 3% on tax (3% of Rs.68,500) | Rs.2,055 |
| Rs.70,555 |
Tip: You can check the detailed breakdown of your tax computation in the Word document on ClearTax or use a calculator to do the math for you. For instructions on how to pay the tax due, follow the steps listed in this article. ***
Make sure you submit your income received from your previous employer to the new employer, and also submit all other details of deductions and any loss from house property.
You can always consider the same in when you are filing your tax return
