Job Switch: In today’s time, it has become common for people to change jobs to get career growth and more salary. While changing the job in the same financial year, new opportunities are provided, while filing income tax returns (ITR), it becomes very important to take care of some things. If you are changing jobs or thinking of changing this year, then understand these 5 important things related to tax so that there is no problem later.
1. Don’t forget to take Form 16 from every employer
If you work in more than one company in a financial year, then you need to take Form 16 from every company. Form 16 gives your salary, tax deduction and other details which are useful while filing ITR. In Part A of Form 16, the source is deducted on the source and the entire salary breakup in Part B.
2. Avoid claiming the same deduction twice
While changing the job, many people accidentally claim deduction of the same investment like EPF, PPF or medical insurance twice. This can cause problems in tax filing. Therefore, add all the deduction once and claim it properly.
3. Gratuity and Leave Encashment correctly pay tax declare
If you have worked in a company for more than five years and you leave the job, then you can get gratuity. Gratuity up to Rs 20 lakh is tax free. Apart from this, there is also a taxation rule of leave encashment. While filing ITR, it is necessary to declare all these income properly.
4. Check Form 26AS well
Form 26AS has complete details of TDS cut off from your salary. This shows how much tax has already been deducted. While filing ITR, check this form so that there is no mistake in claiming tax credit.
5. Make income reporting correctly by mixing old and new salary
Many times people report the salary of the new job, but forget the income of the old job. By doing this, the tax department can see the missing of your income, which can cause notice. Therefore, it is necessary to report a total income by adding salary from both old and new jobs.