Tax computation Tax liability and exemptions form an important consideration while switching jobs. Most employers would be computing employees' tax liability after taking into consideration the basic exemption limit of Rs 1.8 Lakh and also the exemption availed under Section 80C. You need to take form-16 from both employers. Remember to also take a no dues certificate, relieving letter, salary slips for the duration you have stayed. Clearly mention the income earned from your previous employer for that financial year to your new employer. This makes sure you are not taxed twice nor you receive the benefit twice. If you fail to do so, you would have to pay penalty for non-payment of advance tax.