Updated on: Jun 19th, 2024
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6 min read
In this article, we will discuss multiple employers and how to calculate taxes 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 | 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 |
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 |
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 |
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 |
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.