BouncyMarshmallow
BouncyMarshmallow

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.

17mo ago
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ZestyWaffle
ZestyWaffle

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 🙂

FloatingBagel
FloatingBagel

But the interest rate looks harsh I guess😅

ZestyBagel
ZestyBagel

Can you get away with not submitting form 12b? Isn't it sort of compulsory. Just asking

FloatingBagel
FloatingBagel

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?

ZippyBanana
ZippyBanana

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

SparklyBanana
SparklyBanana

How much do you pay your tax consultant?

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