Less income tax deduction from last 2 months
From last 2 months since I resigned ,my income tax deducted is very less(10% of what used to get deducted)in July and August salary..is anyone facing same situation?..what may be the reason ,how to inquire about this in tcs payroll related things ? Later it will be a headache i know Please suggest Thanks .
Earlier the tax calculations were assuming full salary for the year.. And corresponding higher tax bracket and tax.
Since now tcs has your income visibility only till your last working day, the total salary, tax backet and tax has reduced. Hence less deduction.
When you join the new company, do declare tcs income and tax in their portal, else you'll get a huge shock when filing return next year.
New regime but before resigning everything used to be normal in terms of income tax but after resignation this has changed .
you can check tax statement in my documents to see how income tax is calculated. As somebody mentioned above, generally income tax deduction is calculated by projecting the annual income for the entire year. in your case since you resigned, it may be only calculating upto your LWD
Because TCS will calculate tax till LWD only Earlier they used to calculate till full financial year.
New tax regime tax bracket is different and calculation
So amount of tax deducted will be less
Which tax regime you choose?
