Moving jobs in the middle of the year? Here is how you can avoid a tax shock

Double Deductions are the Primary Reasons

  • Exemption limit of ₹ 2.5 lakhs is counted by both employers
  • Double-counting of Section 80C tax benefits
  1. Let’s say you worked in your previous organization at a before tax (gross) monthly salary of ₹ 68,000 and your 80C declarations were ₹ 55,000. Your last working day was June 30, 2019.
  2. Now when you joined a new organization on July 01, 2019, your monthly salary is ₹ 92,000 and your final investments under Section 80C are ₹ 90,000.

Here is What Happened?

Form 12B — The Solution to this Problem

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