Changing jobs? Here's how to file your income tax returns

It's better to inform new employer about income earned and deduction availed with the previous one

If you have changed jobs in the previous financial year, filing the income tax return could be complex, as you will have two Form 16s to deal with. In case the new employer was not updated about the deductions claimed in the previous company, you may have significant outstanding tax liability while filing returns. 

Employees usually declare their tax-savings investments and other deductions to both the employers, but they don’t realise this can change the tax computation. Vikram Ramchand, co-founder, Makemyreturns.com, says there’s Rs 1.5 lakh tax deduction available under Section 80C, Rs 2 lakh deduction on home loan interest,