Switching Jobs? Your Tax Life May Change Too

The job market reopened in 2022, after prolonged disruption due to Covid, but towards the end of the year, there was news of mass layoffs by major companies, such as Meta and Amazon. Landing a job in such tough times is surely to be cherished. But note that this may not just change your career graph, but also your tax life. If you change jobs in a single financial year, a salary hike could put you in a higher tax bracket, thus increasing your tax liability. Besides, if you are not careful in providing the necessary documents to your new employer, you could find yourself burdened with unpaid tax at the time of filing your income tax returns (ITR). Change In Tax Bracket Your income tax slab would be arrived at by clubbing all the incomes from the various companies you would have worked at during the financial year. In some cases, the slab may not change even after a hike. For instance, if...