Kolkata: Filing income tax returns is commonplace since taxpayers have to do it every year. However, in case one has switched jobs, it becomes slightly complicated in the sense that there are a few additional steps that the employee/taxpayer has to do. Let us have a look at those.
Every year, the last date for filing ITR (income tax return) is July 31 without penalty. If one submits the ITR after July 31 he/she can get away with a penalty of Rs 5,000. The last date for submission of ITR with penalty is December 31. It is called a belated return in the income tax parlance.
Obtain Form 16 from both employers
The first step is to collect Form 16 from both employers. Form 16 carries the statement and details of the tax deductions made from the employee’s salary during the preceding financial year. Both forms must be verified for investment declarations, and any gratuity payment etc. One also has to ensure mechanical details such as PAN (Permanent Account Number) are correct. This also necessary for appropriate reporting of income and accurate computation of taxes.
Consolidation of salary details
Consolidation of salary details will provide a clear picture of the total income that you made for the year in question. It will also help in avoiding double taxation. Missing out on deductions can also be avoided. The tax calculations should avoid any discrepancy for which you might be hauled by the Income Tax Department later.
Investment declarations have to be verified
If you are in the old tax regime, you are eligible to get income tax deductions on a plethora of investments. The employee has to ensure that he/she has reported them accurately to both employers. The investments must be clarified with both employers so that there is no excess or less tax deductions on your income.
New employer to be updated on earlier income
Tax experts point out that one must inform the new employer about the income one earned from the earlier employer. This is necessary to enable the new employer compute the tax to be deducted appropriately. The taxes should not be more or less than the amount warranted by the income of the employee. It will also help the employee avoid any complication that might be detected by the Income Tax Department.
Filing income tax returns is something that a taxpayers does every year. However, if you are switching jobs, there are a few steps that you must be taking before you file ITR. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
