Tax penalty on switching job, I am shocked flabbergasted!
I had joined new org in July 2022 last year and had submitted my previous org form16 and salary slips with monthly tax deductions shown in them. Now today my tax consultant informed that since I had not submitted form 12b to new employer, the 250000 basic exemption has been counted twice and now I have to pay 30 percent of 250000 ie approx 80000 rupees!! I don’t understand this as I was under impression that each monthly tax is being deducted and there is now way there can be shortfall in my tax deduction. Please help me if this correct or incorrect and if it’s mistake on my part any way to reduce penalty.
Your tax consultant is correct. But there will be no penalty, only interest on delayed payment of taxes would be there.
There is a very remote chance (less than 1%) to avoid interest. 99.99% of employers will not agree for this.
Hence take it as a lesson pay tax with interest and be relieved instead of taking additional stress 🙂
NeatFrame72
Stealth
a year ago
But the interest rate looks harsh I guess😅
Ginalinetti11
Stealth
a year ago
Can you get away with not submitting form 12b? Isn't it sort of compulsory. Just asking
You know you can go to the tax deduction website and actually change the amount on your own.
Add the total salary you got there and the taxes your organisations have both paid, unless you’re doing some kinda fraud, it wouldn’t take more than 15 minutes
yesmonk
Stealth
a year ago
How much do you pay your tax consultant?
NeatFrame72
Stealth
a year ago
Same thing happened to me. I have to pay interest on the delayed payment of tax. Is the interest rate normal or is it harsh?
