Home / Money / Personal Finance /  I have changed job this year. My second employer did not deduct tax. What to do?

My daughter has worked with two companies in the current financial year. My first employer did not deduct any tax and the present employer has also not deducted any tax so far. What should she do now?

Umang Mehta

Answer: Tax liability of a person is determined on the basis of the aggregate income earned during the year from all the sources taken together. When your daughter joined the second company, she should have informed the new employer about salary received by her from the first employer. Your daughter can still declare salary received by her from the first employer in Form 12B to the present employer and request the second employer to take into the salary received from the first employer while computing tax liability for the whole year. The present employer will then deduct appropriate amount of tax on aggregate of taxable salary from both the employers.

If she fails to intimate the second employer about her previous salary, she will have to pay interest while filing her return in case her total income is taxable. This is highly probable as both the employers would have given her the benefit of basic exemption of Rs. 2.5 lakh as well as for various deduction available like Section 80C, 80D etc. In case the present employer refuses to accept the documents now as the year is almost over, you can work out the aggregate tax liability after taking into account salary from both the employers and various deductions available and pay the tax by way of advance tax. Though the last due date for payment of advance tax of 15th March is already over, you can still pay it by 31st March as any tax paid by 31st March is treated as advance tax. Please note that she does not have to pay advance tax in case the aggregate tax liability does not exceed 10,000 and in which case the tax can be paid at the time of filing the ITR.

Balwant Jain is a tax and investment expert

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