Job Switch Tax
AboutReconcile tax across multiple employers when you change jobs in a financial year. Each employer assumes you'll be there the full year — the actual combined liability usually pushes you into a higher slab than either employer assumed. Compares new vs old regime side-by-side and nets total TDS deducted against tax owed.
Summary
Totals across 2 employers — before any tax computation.
New regime
BestDeductions applied
- Standard deduction₹75,000
TDS reconciliation
Old regime
Deductions applied
- Standard deduction₹50,000
TDS reconciliation
Notes & references
Why this calculator?
- Each employer computes TDS as if you'd worked there the whole year, so the new employer doesn't know your old TDS or salary. At year-end you reconcile combined income against combined TDS — this tool does the math for both regimes.
How we compute
- HRA exemption is computed per employer using that period's HRA, rent, and an assumed basic of 50% of (period salary + bonus). Sum gives the FY total.
- Standard deduction applies once per FY (₹75K new / ₹50K old), not per employer.
- Tax engine is the same as the standalone tax calculator — slabs per FY 2025-26, 87A rebate with marginal relief, surcharge with marginal relief at every threshold, 4% cess.
- TDS reconciliation: Net payable = Total tax − Total TDS deducted by all employers. A negative number means a refund.
Not modelled (yet)
- Leave encashment & gratuity exemption caps — in V1 these are treated as fully exempt from taxable income (added to your gross pay summary, then offset by an equivalent exemption). Section 10(10AA) ₹25 lakh cap and Section 10(10) ₹20 lakh cap, plus the Government-employee full-exemption toggle, land in the next round.
- 80C / 80D / NPS / home loan interest (Advanced inputs).
- Notice-pay deduction, joining bonus clawback, ESOP perquisite, stock options vesting.
Tax law referenced
- Section 115BAC — New regime rules.
- Section 87A — Rebate for low income.
- Section 16(ia) — Standard Deduction.
- Section 16(iii) — Professional tax (old regime only).
- Section 10(13A) — HRA exemption (old regime only).
- Section 10(10), 10(10AA) — Gratuity / leave encashment exemptions (math coming).
Official references
- incometax.gov.in — file ITR, view Form 26AS / AIS.
- incometaxindia.gov.in — Acts, rules, circulars.
- indiabudget.gov.in — Finance Bill, slabs.
For illustrative purposes. Reconciling actual tax for ITR filing is sensitive to perquisites, stock awards, and state-specific rules. Consult a chartered accountant before filing.
Frequently asked questions
Why do I owe extra tax after switching jobs?
Each employer deducts TDS as if it is your only employer for the year — so both give you the basic exemption and lower slabs on your salary with them. Combined, your real income lands in a higher slab than either employer assumed, so the total TDS falls short and you owe the difference at filing. This tool shows that shortfall before it surprises you.
What do I need to enter for each employer?
For each employer, enter the salary you received from them and the TDS they already deducted (both are on your Form 16 / payslips). The calculator combines the incomes, computes tax on the total, subtracts the TDS already paid, and shows the remaining liability.
Does it work for more than two employers?
Yes. Add as many employers as you changed through in the financial year — the reconciliation sums all of them against a single correct tax computation.
Can I compare the old and new regime for a multi-employer year?
Yes. It computes your combined liability under both the old and new regimes for FY 2025-26 so you can see which is cheaper once all your employers are added together.
Is my salary data private, and is this official tax advice?
Everything runs in your browser with nothing uploaded, and inputs are saved only in localStorage. The figures are illustrative estimates — confirm the final number with a chartered accountant or the income-tax portal before filing.