When you’re considering filing taxes after a job change, it’s essential to stay organised and informed. Employment transition brings specific tax-return considerations and compliance issues. This article outlines what you need to keep in mind when filing taxes after a job change, especially from an Indian perspective.
Why filing taxes after a job change matters:
When you move from one company to another, you may receive salary from two (or more) employers in one financial year. Therefore, when it comes to filing taxes after a job change, you must ensure all salary details (Form 16s or salary slips) are consolidated. Additionally, your TDS may vary because new employer might deduct tax differently. For example, if you leave one job mid-year, you should ask the previous employer for your final salary certificate and TDS details.
Key checklist when changing jobs and filing taxes:
Here’s a checklist to ease your filing taxes after a job change process:
- Obtain Form 16 from your previous employer and your current employer for the same financial year.
- Collect salary slips, bonus statements and any separation or joining employer benefits.
- Check the tax regime you’re under: old tax regime versus new tax regime. Your job change may affect your choice and thereby your deductions.
- Track deductions like Section 80C (PF, ELSS), Section 24 (home-loan interest) etc. In addition, if you received any leave encashment or retirement benefits, include those.
- Match TDS deducted by employers with what appears in your Form 26AS (tax credit statement).
- If you had multiple employers, ensure total taxable salary is computed correctly and report under the correct ITR form (generally ITR-1 or ITR-2 for salaried individuals).
- Understand that leaving a job mid-year does not exempt you from filing tax return if income crosses threshold.
File Your ITR & Meet Deadlines:
After a job change, you still must file your ITR for the assessment year covering the financial year in which job switch occurred. Many taxpayers believe switching jobs exempts them—but that’s incorrect. File the correct form (typically ITR-1 or ITR-2 for salaried individuals). Clearly mention income from all sources and choose the correct tax regime. If you miss the deadline, you can file a belated return but you may lose deductions like HRA and LTA.
Moreover, reconcile your final tax liability: if excess TDS was deducted, you may claim a refund; if insufficient, you must pay the balance and interest. For timely refunds, ensure bank details are updated. Remember: job-change years demand extra care, but with the right checklist you’ll stay compliant and stress-free.
Keep Sheets Clean – Deductions, Tax Regime & Alerts
When filing taxes after a job change, you must be careful about claiming deductions. For example, you cannot claim the Section 80C limit (₹1.5 lakh) twice because you switched jobs — the deduction is aggregate across both employers. Additionally, the choice between the old tax regime and the new tax regime matters especially when your salary has increased due to the job switch.
Therefore, when you are “filing taxes after a job change”, compare both regimes (deductions vs lower slabs) before filing. Moreover, keep all Form 16s, Form 12BB (if any), salary slips and proof of investments ready. Missing paperwork can delay your return or attract scrutiny.
Conclusion:
In conclusion, filing taxes after a job change may seem daunting, but with proper planning you can handle it smoothly. Review your income from both employers, select the optimal tax regime, update key records, and file your ITR before the deadline. Ready to file your taxes? Explore more financial insights now!
– Ketaki Dandekar (Team Arthology)
Read more about Filing Taxes After a Job Change here – https://cleartax.in/changed-jobs