Why does a tax liability arises in case of change in employment?
Why does a tax liability arises in case of change in employment? 1) While filing the returns we may see that there is a tax payable while disclosing salaries from all the employers during the year. 2) This situation arises when the salary from previous employment is not disclosed with the later employer. 3) In the absence of disclosure, second employer calculates tax on the salary paid by him alone. 4) In such case, each employers calculates tax as below upto 250000 - 0 tax 250001-500000 5% 500001-1000000 20% above 10 lacs 30% 50000 standard deduction 5) But while filing tax return, the entire salary will be clubbed and taxed according to the slabs. 6) We get standard deduction of 50000 only once, the basic exemption of 250000 only once and the balance income might be taxed at highest slab. This results in shorter tax deduction from both the employers and you see there is a tax payable while filing the return. To be crisp, this tax payable is nothing but shorter tax deductio...