4. Tax Computation

Your tax liability and tax exemption form an important consideration while you are switching jobs. Your employer may calculate your tax liability after taking into consideration the basic exemption limit of 5 lakhs and also the exemption availed under Section 80C.There can also be a possibility that your previous employer and present employer may give you these exemptions for the same financial year. If you are making a job switch in the middle of the year then, you must make sure that the deductions and exemptions regarding your tax liability are made only once.

You must always report about your income earned from your previous employer for that financial in the mid of which you switched your job, to your new employer. This would avoid duplication making sure you are not taxed twice or given twice the benefit and having to pay the lump sum taxes later. If you are not intimating about your income from the previous employment to the current employer, then you may need to pay some penalty for non-payment of advance tax or TDS.