As most of us already know, the last date to file your Income Tax Returns for the fiscal year 2017-2018 is approaching on 31st July 2018. You must have prepared all your documents by now, as you wouldn’t want to delay filing your ITR – being a responsible citizen. In case you need help, here is the list of documents that you will need to file the ITR.
However, if you’re one of the people who has switched jobs in the last financial year and are clueless regarding what process you need to follow and what documents you need to file, this article can be of great help to you!
Table of Content
Calculate the Total Due Tax
First of all, you must trace the total due tax, which is generated from the separate employers (current and previous), as the onus of filing the ITR correctly is totally on the taxpayer. As a taxpayer, to make sure that you do not make any mistakes, you must recalculate the total tax based on the Form-16s (tax deducted at source or TDS certificate) issued by the different organization.
For those who are aloof, Form 16 states the total amount (including the basic salary and other allowances) paid to the employee as well as the taxes deducted in a year.
To make things simpler for you, we have made a list of some important things that need to be checked while filing ITR when you have changed your job.
Duplicate Investment Declaration
If you decide to switch jobs in the middle of the year, you need to make sure that the deductions/exemptions have been claimed only once. Moreover, you should always maintain the required proofs – in case of any future enquiry by the tax department. If by any chance you have declared the same investments with your present and past employer, you need to recalculate your tax liability. This will decrease the chances of duplication.
Keep a Tab on the Tax Slabs
Different organizations have different salary structure, which generally changes the tax slabs. When you join a new organization, your salary usually increases, altering the tax slabs. As a responsible taxpayer, you must keep a check on the tax slabs as well.
When you change your job in the middle of a financial year, it is very probable that you end up with two or more form 16s – of the current and the previous employers. In such cases, the tax calculations need to be performed while considering different form 16 documents.
It might be possible that you still haven’t received your Form-16, so you have to contact the accounts department as it is not easy to file returns accurately without the TDS certificate.
In the end…
You might already have a lot of complications in your life, and you really would not want to add one more to the count. Hence, it is always advisable to puck the required tax return form and disclose all the information correctly – to save yourself from difficulties.
Switching jobs in the middle of a fiscal year is normal. Just follow the above-listed points while filing your Income Tax Returns, and you will be fine.