For example, the common fallacy that a taxpayer who changed his/her jobs during the year can get away by paying less tax. Despite he/she will get double tax deduction and exemption from both the employers, the mistake will be discovered when he/she files his/her income tax return. The double exemption and deduction will automatically get reduced and the taxpayer will have to shell out a huge tax. If the unpaid tax crosses Rs 10,000 even after the due date then there is a penalty for an interest rate of 1% per month of being delayed.
The problem will not leave him until he files his income tax return. The income from both the employers will be reflected in the Form 26AS, he is likely to receive a notice for not filing his income tax return. A taxpayer cannot put the blame on the employer for not deducting the due tax. The employer deducts the tax on the approximated annual income of an individual based on the declaration and the investment proof submitted by him. It is the employee’s duty to verify the particulars reflected in the Form 16.
If there is a mistake in the Form 16 then the employee must immediately alert the employer. The employer should make the necessary correction, if required should furnish a revised TDS return. Yet 31% of the respondents choose this path, that's the long route. The easier way to correct the mistake is to provide the right numbers in the
Income Tax Return form.
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