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How to handle a
JOB CHANGE?
Whether you get an exciting new career opportunity or fall victim to corporate downsizing, you're likely to switch jobs at some point--perhaps often--in your career. However, leaving a job and starting a new one can create a number of implications for your tax and your benefits.
Read On
1. How a Job change will affect your taxes?
2. Tax Deducted at source
3. Your Retirement savings
1. How a Job change will affect your taxes?
Remember that compensation you receive when you leave a job would be taxed, so make sure you subject them to a Tax Deduction. The same is true for any earned leave you encash at the time of quitting. Also, ask your employer for the final Form-16. Your former employer isn't required to send it to you right away, but must provide it by April 30th of the year after you leave the company--the same deadline you would have if they still employed you.
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2. Tax Deducted at source
A new job offers you a fresh start to get your TDS in order. Take time to fill out your Tax Declaration for your new employer. The number of "allowances" you claim on that form determines
3. Your Retirement savings
Changing jobs can create havoc with retirement savings. If your stint with the existing company is less than 5 years, you may be better off transferring your balance to your new employer's account. Ask your former boss to send the money directly to the new account. If part of your salary is invested in your company's stock, be sure to check out the capital gain implications before you sell out, It might so happen that waiting for a few more months could save a lot of money.
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