Switched Jobs in FY 2024–25? Here’s How to File Your ITR the Right Way
Job changes are common in today’s dynamic career landscape. Thousands of salaried individuals switch employers every year, Whether for a better opportunity, career growth, or a change of location. However, a job switch in a financial year brings a unique set of challenges when filing your Income Tax Return (ITR).
If you switched jobs in FY 2024–25 (April 1, 2024 to March 31, 2025), your ITR filing process for AY 2025–26 may not be as straightforward as usual. Failing to report income from both employers, mismatches in Form 16s, or forgetting to account for deductions can lead to tax notices, penalties, or unnecessary tax payments.
Here’s a detailed guide to help you file your ITR accurately, efficiently, and stress-free after a job change.
🔍 Understand Your Tax Responsibility
When you change jobs, both your previous and current employers provide you with Form 16 – a certificate showing the TDS (Tax Deducted at Source) deducted on your salary. However, it’s your responsibility—not the employer’s—to aggregate both incomes and file a consolidated return.
Even if your current employer has deducted TDS as per your declaration, they may not be aware of your total income from the previous job, which could result in underpayment of tax if you don’t reconcile both.
📄 Step-by-Step Guide to Filing Your ITR After Switching Jobs
1. Collect All Required Documents
Start by collecting the following documents:
Form 16 from both your previous and current employers.
Salary slips if Form 16 is not yet issued.
Form 26AS – a consolidated tax statement available on the Income Tax portal.
AIS (Annual Information Statement) – it lists income, TDS, investments, and high-value transactions.
Bank statements, investment proofs, and housing loan certificates (if applicable).
2. Verify Income from Both Employers
Check that income from both Form 16s is correctly reflected in Form 26AS and AIS.
If the previous employer didn’t deduct sufficient TDS or missed certain declarations, your overall tax liability may increase.
3. Combine Salaries for the Financial Year
You must add up the total salary received from both employers for the year. This includes:
Basic pay
House Rent Allowance (HRA)
Leave Travel Allowance (LTA)
Performance bonuses
Gratuity (if applicable)
Perquisites or stock options
This consolidated figure must be used when filing your ITR.
Also Read: Government Policies
🧾 Claim Deductions Only Once
One of the biggest mistakes salaried individuals make is claiming deductions twice, such as:
Section 80C: Deductions up to ₹1.5 lakh for EPF, LIC, ELSS, etc.
Section 80D: Health insurance premium
HRA: House rent allowance (must be supported by rent receipts)
Home loan interest (Section 24)
⚠️ Note: If you claimed these deductions with both employers, the Income Tax Department may flag it. Claim each deduction only once, with valid proofs.
💼 Handle Employer Benefits Carefully
If you received relocation allowances, joining bonuses, or PF withdrawals, understand how they’re taxed:
Relocation allowances are tax-free only if supported by bills.
Joining bonuses are fully taxable unless refunded to the employer.
PF withdrawals under 5 years of continuous service are taxable.
Declare these accurately in your ITR to avoid future notices.
🧮 Compute Final Tax Liability
After consolidating income and deductions:
Use the Income Tax portal’s calculator or ITR software (like ClearTax, TaxBuddy, or Quicko) to compute your total tax liability.
Adjust for any TDS already deducted by both employers.
If there’s a shortfall, pay the balance tax as “Self-Assessment Tax” before filing the return.
📤 File the Right ITR Form
If you’re a salaried individual with income from salary, interest, or house property, use ITR-1 (Sahaj).
If you have capital gains or foreign income, you may need ITR-2.
After filling in all details, verify your return using Aadhaar OTP, net banking, or by sending a signed ITR-V to CPC Bengaluru.
