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Showing posts from March, 2023

Switched Jobs in Same FY? Moonlighting ? Avoid this Tax Shock that you may get while filing ITR.

Suppose, You are working with Company "A" and were employed there at the start of the financial year 2022-2023 drawing a salary of Rs. 40k per month (4.8 Lakhs per annum). For ease of understanding, let's assume you have no other income/deductions disclosed to your employer. The employer deducted no TDS on Rs. 4.8L since, there is no tax on 4.8L as you are eligible for rebate under section 87A for total income upto Rs. 5 Lakh. Till September, You were working with Company 'A' and has drawn a salary of Rs. 2.4 Lakhs till date.  From 1st October, You are joining Company 'B' who have offered you an annual package of 8 Lakhs per annum. So, from September to March, Salary Payable for 6 months comes to Rs. 4 Lakhs.  Company "B" did not deduct any TDS as the taxable salary is below 5 Lakhs here. But, You will say company "B" should have deducted TDS here but let me tell you why did Company "B" did not deduct TDS? Reasons 1. Most peop...