Previously I was employed with a CTC of 7 lakhs and I have joined on September in a package of 9 lakhs. My last year regime was old tax regime. Please confirm me whether I need to pay any tax and if yes then is it for the complete financial year or from September 2023 to march 2024
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Hello Siddhant,
Happy New Year 2024.
The community will be happy to guide you here but given the complexities of tax laws and individual circumstances, it’s always recommended that you consult with a tax professional or a chartered accountant to get exact calculations and advice.
Here is a very general guide:
- Since you mentioned joining your new job in September 2023, we are likely discussing the Financial Year (FY) 2023-2024, which corresponds to the Assessment Year (AY) 2024-2025.
- Your total taxable income [Gross Total Income - Deductions under Chapter VI A] for FY 2023-2024 will be the sum of the income earned from both employments and any other incomes (if applicable). You need to add the income from your previous employment (April 2023 to August 2023) and the income from your current employment (September 2023 to March 2024).
Note: Deductions under Chapter VI A as allowed by Indian Income Tax Act are required to be deducted from Gross Total Income to arrive at the total taxable income.
Hope this helps!
If you need more clarity on the tax saving instruments made available & other questions related to what & what not - Please feel free to refer to this [Parichay Webinar] (https://www.youtube.com/watch?v=7hNo2WUx2nI).
Mr Siddhanth,
Happy New Year.
Let me first clarify one key thing before giving detailed answer to your query. Liability to ‘pay’ the tax is of the income earner (you), and that falls due throughout the year, and culminates at the time of filing your income tax return, by 31st July following the year end. But the liability to ‘deduct’ your tax (called TDS) lies with the employer(s) based on the income and deductions related information available with them, and provided by you as per the IT Act.
Coming to your query, you are required to inform your second employer about the income earned from the first employer, and investments/exps eligible for a deduction and TDS made if any.
Finally, whether your total income with 2 employers for the year will be taxable or not is subject to available deductions, depends on which regime you (are advised to) opt for, based on the level of investments you have.
For example, under the new regime, if your Total Income (Gross Total Income ‘from all sources’ minus standard deduction of Rs50,000 without most other deductions) falls below Rs7L, your tax liability will be Nil.
You can get more details from a tax practitioner.
Regards
CA A.B. Pereira
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Perfect explained in detail. Thank you for explanation
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