1. As job-hopping is very common nowadays, an individual who has switched jobs should also make a declaration to the current employer regarding the salary details, deductions and exemptions claimed by him during his previous employment.
2. If such a declaration is not made, the employee may find that he owes taxes which will have to be paid along with penal interest
a) as both employers may have deducted a lower amount of tax taking into account the declarations submitted by the employee to both of them, or
b) the income obtained from the new employer, when clubbed with the previous income, may exceed the previous tax slab.
3. TDS should be considered only as a part of the entire tax payment, paid in advance, and the differential tax has to be paid when filing your tax return, if your total income is taxable above the amount deducted.
4. Therefore, it does not mean that you can exclude the entire income for which tax has been deducted at source while filing your return.
5. Declare your PAN to the bank correctly to avoid 20% TDS on interest earned from deposits, and don't misuse Form 15G/15H facility to avoid penalty later.
2. If such a declaration is not made, the employee may find that he owes taxes which will have to be paid along with penal interest
a) as both employers may have deducted a lower amount of tax taking into account the declarations submitted by the employee to both of them, or
b) the income obtained from the new employer, when clubbed with the previous income, may exceed the previous tax slab.
3. TDS should be considered only as a part of the entire tax payment, paid in advance, and the differential tax has to be paid when filing your tax return, if your total income is taxable above the amount deducted.
4. Therefore, it does not mean that you can exclude the entire income for which tax has been deducted at source while filing your return.
5. Declare your PAN to the bank correctly to avoid 20% TDS on interest earned from deposits, and don't misuse Form 15G/15H facility to avoid penalty later.