POSTED BY January 6, 2014 2:53 pm COMMENTS (3)ON
I joined a company this year in August after completing my education. Is the correct way to calculate income tax and tax slabs is to extrapolate the income from August-March to 12 month income or just consider the 8 month income?
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3 replies on this article “How is income tax calculated when joining a company in mid of the year?”
Dear Riant, in your case there was no income from April 2013 till July 2013, so how can you pay tax on this zero income. You need to pay tax only on your income post joining the company.
Most companies will accept a declaration from newly joined employee about salary from previous employment. Just check with your present employer’s finance department for the procedure. If they accept such a declaration they will calculate the tax by considering your previous employment.
If present company is not accepting a declaration then you will have to pay tax by your own. You can estimate the tax and pay from online.
No need to extrapolate.
Just pay the income tax on income you have really earned.
I also joined in August, and I paid very less tax.
Isn’t your company doing this for you?