Common Reasons for Getting Tax Due While E-Filing

Updated on: Jun 19th, 2024

6 min read

In this article, we will discuss multiple employers and how to calculate taxes correctly in detail.

Multiple Employers

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:

Let’s say you worked at Infosys for 6 months and then moved to Wipro.
You also earned interest income of Rs.10,000 from a fixed deposit.
You have paid an insurance premium of Rs.80,000 which qualifies for 80C deduction.

Income	Amount in Rs.
Income from INFOSYS(6 months)	3,50,000
Income from WIPRO(6 months)	5,00,000
Interest Income	10,000
Total income	8,60,000

Infosys made no TDS on your income of Rs.3,50,000 as the total income is less than Rs.500,000.
Wipro calculated tax on your income of Rs.5,00,000 and also made no TDS as the income equal to Rs.500,000. This is because they did not have information about Infosys. Tax due is arrived at as the basic exemption being provided twice for the same PAN(not allowed) and due to the combined income from Infosys and Wipro falling under a higher tax bracket.

How to Calculate Tax Correctly?

Income tax is calculated on income after deductions.
The total of ‘Income chargeable under Salaries’ is your gross total income.
If you have interest income from fixed deposits etc, add it to your gross total income.
Subtract all the deductions you’ve made under Section 80C, such as investments towards ELSS, PPF, medical insurance or life insurance.

Taxable Income as per Old Tax Regime

Particulars	Amount in Rs.	Amount in Rs.
Income from Salary
Gross Salary	8,50,000
Less - Standard Deduction	50,000	8,00,000
Income from Other Sources
Interest Income		10,000
Total Income		8,10,000
less - Chapter VI A Deductions
80C - Insurance Premium	80,000
80TTA - Interest income	10,000	90,000
Taxable Income		7,20,000

Tax slabs are per the Old Tax Regime

Slabs	Percentage applicable	Tax applicable
0- Rs.2,50,000	No tax
Rs.2,50,000- Rs.5,00,000	5%	Rs.12,500
Rs.5,00,000 – Rs.7,20,000	20%	Rs.44,000
Health and Education Cess	4% on tax (4% of Rs.56,500)	Rs.2,260
Total Tax Payable		Rs.58,760
TDS made by Infosys and Wipro		Rs.0
Tax amount to be taxpayer at the time filing (excluding interest)		Rs.58,760

Taxable Income are per the New Tax Regime

Particulars	Amount in Rs.	Amount in Rs.
Income from Salary
Gross Salary	8,50,000
Less - Standard Deduction	50,000	8,00,000
Income from Other Sources
Interest Income		10,000
Total Taxable Income		8,10,000

Tax slabs are per the New Tax Regime

Slabs	Percentage applicable	Tax applicable
0- Rs.3,00,000	No tax
Rs.3,00,000- Rs.6,00,000	5%	Rs.15,000
Rs.6,00,000 – Rs.8,10,000	10%	Rs.21,000
Health and Education Cess	4% on tax (4% of Rs.36,000)	Rs.1,440
Total Tax Payable		Rs.37,440
TDS made by Infosys and Wipro		Rs.0
Tax amount to be taxpayer at the time filing (excluding interest)		Rs.37,440

As seen, under both the regimes there is a tax liability. Hence, it is very important for the taxpayer to calculate the total income in advance and either report it to the latter employer or pay advance taxes to avoid one-time payment and interest thereon.

Tip: You can check the detailed breakdown of your tax computation under both the regimes by using the ClearTax calculator . For instructions on how to pay the tax due, follow the steps listed in this article.

Frequently Asked Questions

What to do to make sure tax is correctly deducted in case of a change in employer?

Make sure you submit your income received from your previous employer to the new employer, as well as all other details of deductions and any loss from house property.

What should I do if I forget to submit or am unable to submit certain deduction-related documents to the employer?

You can always consider the same when you are filing your tax return