Shocked to see I have to pay more tax than what was deducted.
Until now, I have always received some money back whenever I file income tax returns. I was hoping the same this year too. But I'm shocked to see that i have some tax left to pay.
I did all the calculations and it seems right. But I couldn't bring myself to pay it as I'm not sure if I did my calculations right.
Why and how often does this happen?
My initial guess is I switched jobs twice last year, and usually they don't deduct tax in your last month and first month. Could that be a reason?
Am I overthinking and should I just go ahead and pay the pending tax ?
Why does this happen?
Whenever someone switches to a new org during current FY (Apr - Mar next year), need to declare about your earnings and tax deducted so far. So that your tax in new org will be calculated based on your yearly earnings. Else, tax deduction will be less based on the tax slabs and pending tax will be more during itr. Example : You have switched to a new org in December, salary earned 12lpa no tax paid. Jan, Feb, March also will be tax free as your tax slabs are reset to 12lpa again.. Let's say you earned 3lpa in months. So during itr, your total income will vary and hence pending tax
They have also started charging penalty from last 2-3 yrs, on stupid basis, section 234A, 234B, C,D ; all for stupid reasons. They just want to suck every drop of your blood.
About this additional tax, you just need to add up your total earnings and decide based on that, you can’t blindly assume that you will certainly get refunds
Makes sense.
This is also due to regime changes if I am not wrong..In the old regime you used to have multiple ways for tax deduction while the new one restricts deduction to Rs.75000...most users will pay additional taxes for the first time due to this regime change..
Got it
As such paying tax is such a pain and add to it make it worse through complex process. Government makes sure your financial and mental health are both screwed.
If you don't disclose LTCG Gain, rental income, Other Income to you company will also make you pay tax + penalty later.
