Changing jobs is a common thing among individuals. People change jobs either for a better pay scale or for acquiring new skills, and when you continue to do this for one financial year (FY), you will have more than one Form 16. This may create confusion and whether your income taxes are in order or not. Try out the
best-chartered accountant firms to sort out issues.
- Inform your current employer about the previous employment
There are several individuals who do not inform their new employer about the previous salary structure. As a result, the new employer has to calculate income tax based on the income earned from him in the FY. This results in a miscalculation of taxes for the financial year. To avoid this confusion you must declare your previous salary structure to your current employer with the help of the
Chartered accountants in Chennai.
To avoid this miscalculation of taxes, you should declare your previous salary to your new employer as soon as you join the new company.
- Include all the information of every employer in your tax return form
Ensure you receive your Form 16 from all the employers you have worked in the previous financial year. Form 16 is the most important document you require to file your income tax returns. You require name, PAN of the employer, TAN of the employer, and the address must be reported for each employer in your tax return.
- Consolidate salary from all employers
You will need to consolidate the salary earned from all the employers while you file your tax returns. In case you miss reporting any such salary, the department may send you a notice about the non-reporting of income.
Remember your salary is taxable irrespective of whether TDS is deducted or not, so remember to include this amount in your return.
- Adjusting exempt allowances
Usually, when it comes to job change, the salary structure must change. This may lead to changes in your allowances specifically your house rent allowance (HRA). Do remember to claim HRA exemption from all your employers. You must submit the rent receipts, in case stay rented apartment.
If you have missed submitting the rent receipts to your employers on time, you can claim the HRA while you try to file your income tax returns. In such a case, you can recalculate your HRA exemption for the entire year, adjust your salary accordingly and get a refund if the excess tax is deducted.
- Claim all the tax deductions
The employers begin the exercise of collecting proof of tax-saving deductions around February or March every year. Many individuals quit their job before the stipulated period and the employers fail to provide them with a slew of various deductions.
- Check your Form 26AS
Form 26AS is the tax credit statement that involves the
details of TDS by various deductors. A salaried individual can get all details of his salary credited every month and the tax deducted thereon from each employer in Form 26AS. This form is very important for filing your income tax returns as you can take the credit of all the tax deducted against your total tax dues in a financial year.
One can cross-check the TDS entries appearing in the Form 26AS with his payslips or bank statements. In case there is a mismatch of entries, he must report to the employer and resolve it before filing the tax returns.
