BENGALURU: Not many 20 year olds shift jobs in their initial years of work, but for those that do, there are certain things to be kept in mind. In the excitement of changing jobs, be it for a higher salary, better prospects, fresh challenges, or acquisition of new skills, one might ignore their finances and end up suffering avoidable complications. Worst among such complications of poor financial planning is taxation, which is ignored due to lack of information. It is needless to say how important it is to resolve tax related complications.

To give a clear picture of tax complications, the Times of India gave five most common tax-related issues that are fallouts of job switches and tips to spare you the consequences.

Impact of multiple Form 16s:

If you change jobs mid-stream while not having informed your new employer about the previous income, you are ought to get a shock when you file your tax returns. You might have to pay additional tax while filing returns. This is because both employers would have factored in the basic exemption of 2.5 lakh and Section 80C investments of 1.5 lakh while calculating your tax liability. This silly error would result in exempting you from tax benefits in the form of lower tax slabs.

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