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Read Tax Laws When Changing Jobs

Wednesday, 30 July 2014, 02:03 IST
By SiliconIndia
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BANGALORE: Attention! Are you planning to change job? Then you must check about the tax implication, otherwise you might have to pay more tax. Does it raise your concern? It should be, thus one must be updated with the tax status at the time of switching jobs.



According to the Income Tax Act, you need to produce form 16 or certificate of tax deduction at source that includes all the necessary details such as your income, TDS at source and other proofs should be presented to claim tax deduction, subjected by the previous employer at the end of the financial year to the new employer. The new employer then needs to integrate and merge it with the salary amount.



Now the question arises what if one forgets or failed to do so, then what happens? Such taxpayers are imposed by an interest penalty under Section 234 C and 234 B. For example if one is liable of paying tax of Rs.9,000 by October, but he manages to pay just Rs.5, 000, in that case he will be charged with 1 percent interest till September.



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