To further understand the problem, here’s an example, one of the software engineer who was getting Rs.9.50 lakh in the former company, and he switched on to new job where he was getting Rs.13 lakh.
In both the companies he saved Rs. 1 lakh following the benefits out of the section 80C and thus he paid a total of Rs.2.90 lakhs as tax. But when his total income (Rs.9 lakh + Rs.13 lakh) was accounted, his tax liability increased to Rs.5.05 lakhs.
What required on your part to stay away from such kind of unnoticed tax deductions from your salary, mostly when one shifts the job is that you must acquaint the present employer with the current CTC (cost to company)at the time of joining the new company. Moreover one must be aware that his previous salary is also taken into account for TDS calculations.
It’s always advisable to take a help from a tax consultant and get acknowledged with the necessary steps to reduce the tax liability. So be careful, the next time you changing a job, you can save money with the relevant information about the tax laws. Choice is yours!
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