Are you switching jobs mid-year? Here’s what you need to know about double taxation If you are planning to take up a new job or have already moved to a new one in the middle of the year, there are a few tax checks you need to be aware of. Many professionals who change jobs during the year, don’t realise how their taxes will get affected by this move. Because of this, they are left shocked at the end of the year when they have to pay hefty amounts toward taxes. This can be avoided, though. The majority of us seldom give any thought to telling our new employer about our prior salary, taxes that have already been paid, or deductions that we have already taken. And when we fail to provide these details, the following occurs: The 2.5 lakh exemption cap is tallied by both employers and tax benefits under Section 80C are double counted. Let’s assume that your prior employer paid you a before-tax (gross) monthly salary of Rs. 68, 000 and that your 80C declarations totaled Rs. 55, 000. Your final day of employment was June 30, 2020. Now, as of July 1, 2020, you started working for a new company. Your monthly compensation is Rs. 92, 000, and you have Rs. 90, 000 in final Section 80C investments. Your new employer used the standard deductions and the exemption limit to determine your tax because you failed to give information about your previous income and TDS. However, your previous employer had approved these two exemptions when determining your tax. When the combined incomes are calculated and the double counting is eliminated, a significant tax liability is revealed. To avoid paying fines on the additional tax exemptions that were granted to you, you can declare the aforementioned tax deductions to your new employer using Form 12B.