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How to file income tax return in case of job change in a given financial year?

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How to file income tax return in case of job change?
Income tax return is to be filed in case if you qualify the criteria and fall in the income bracket and meet certain other conditions as laid down by the Income Tax Act 1961 And the process as per specifications by the authority has to be adhered to strictly as a social and moral obligation that will be beneficial for the individual filing tax return in the long run.
 

However, as with other changes, change in employment also results in tax implication and more so in a case when job is changed in a particular financial year.

Procedure of filing return in case of change in employment

The Income Tax Act requires an individual to file income tax return for the complete financial year which in India starts from 1st April and ends on 31st March in the following year. So, in case even if you have changed the job in the same financial year, authorities require you to sum up the total income from both the employer and file income tax return. And filing tax return in such a case requires all the more care and efforts on your part.

To proceed you need to produce form 16 or Certificate of Tax deduction at source, detailing your income, tax deduction at source (TDS) and other proofs submitted to claim tax deduction, issued by the previous employer at the end or more often at the end of the financial year to the new employer. The new employer then needs to incorporate and consolidate it with the salary amount it pays.

Post these steps, the new employer also issues the TDS certificate or Form 16 that covers salary income from both the previous and current employer plus also incorporates details of TDS deducted by the previous and current employer. Now, with the Form 16 from the new employer in hand that summarize salary income from both the previous and current employer, you can file your tax return.

 

And appropriate details concerning both of the employers together with the tax amount deposited by them and their TAN or tax deduction account number should be property furnished in the income tax return form field requiring you to enter or provide tax deducted details.

Other aspects to take note of while filing tax return in case of job change

In case the previous employer has not issued form 16 on account of some reason such as no tax deduction at its end, employee can file the return taking into consideration the pay-slips plus the form 16 issued by the new employer.

In the other case, when you do not furnish form 16 issued by your previous employer to the new employer, you can file tax return taking cues from the two form 16 issued by the previous and new employer.

GoodReturns.in

Story first published: Friday, November 22, 2013, 11:20 [IST]
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