Income tax for employee joined in September/ mid year

Employee joined for a new job in the company in September month for 40K per month.

  1. Is the employee is supposed to pay tax from the first month onwards?
  2. What would be the total income tax for the employee?


he/She will not fall under tax liability and no tax will be deducted until & unless he/she declares income from the previous employer. even after declaring his previous employer income, he will not fall under tax liability until his taxable income below 5 lakhs.


Hi Anushree,

  1. if opted for old regime, tax will be 0. Employee will not be liable under tax since next 7 months taxable income is not exceeding more than 2.5 lakhs

  2. If employee opted the new regime, employee has liable to pay 5% of the tax for 30000/-

Total Income 7 x Rs.40000 =Rs.280000
Tax bracket ( 2.5 L to 5 L)
Taxable amount - Rs.280000-Rs.250000 =Rs.30000
TDS slab 5 %
Tax payable Rs.1500
Edu Cess Rs. 60
Total Rs.1560
Average tax for 7 months Rs.223