Job Switch Tax Calculator 2026
Changed jobs this year? See the tax your employers missed and what you owe when you file.
Your jobs this tax year
Job 1
Gross pay on your payslip before TDS. Under the old regime, leave out the exempt part of allowances such as HRA.
Taxed as salary in the year you receive it (section 18(1)(b) of the Income-tax Act, 2025; earlier 17(3)(iii)).
Taxed as salary (section 18(1)(a); earlier 17(3)(i)). If part of it is exempt, such as retrenchment compensation to a workman or a voluntary retirement scheme payment up to ₹5 lakh, enter only the taxable part.
Job 2
Gross pay on your payslip before TDS. Under the old regime, leave out the exempt part of allowances such as HRA.
Taxed as salary in the year you receive it (section 18(1)(b) of the Income-tax Act, 2025; earlier 17(3)(iii)).
Taxed as salary (section 18(1)(a); earlier 17(3)(i)). If part of it is exempt, such as retrenchment compensation to a workman or a voluntary retirement scheme payment up to ₹5 lakh, enter only the taxable part.
Form 122 (earlier Form 12B) tells a new employer what your earlier employers paid you and deducted this year.
- Tax due when you file
- ₹80,340
- Tax for the year ₹80,340 − TDS by your employers ₹0
- Salary for the year
- ₹13.90 L
- Taxable income
- ₹13.15 L
- Tax for the year
- ₹80,340
- TDS by all employers
- ₹0
Why the gap
An employer without Form 122 works out tax on its own salary alone. Each one gave you the ₹75,000 standard deduction and the low slabs again, and up to ₹12,00,000 of taxable income the rebate under section 156 (earlier 87A) cleared the tax. Your tax for the year is on the total, with one standard deduction.
With Form 122 to every new employer
Your employers would have deducted ₹80,340 between them, the full tax for the year, and nothing would be left for filing.
A balance of ₹10,000 or more is advance tax (section 404 of the Income-tax Act, 2025; earlier 208), due in parts by 15 June, 15 September, 15 December and 15 March (section 408). Paying late adds interest under sections 424 and 425 (earlier 234B and 234C). Pay it as soon as you spot it, or, if your current employer does not have Form 122 yet, give it one so it deducts the rest from your remaining salary. A resident aged 60 or more with no business income pays no advance tax (section 403(3)).
Whatever is still unpaid is paid before you file your return, as self-assessment tax with any interest (section 266; earlier 140A).
What each employer saw
- Job 1
- Months
- 5
- Salary paid
- ₹5.00 L
- Salary it counted
- ₹5.00 L
- Taxable it counted
- ₹4.25 L
- Form 122
- —
- TDS deducted
- ₹0
- Job 2
- Months
- 7
- Salary paid
- ₹8.90 L
- Salary it counted
- ₹8.90 L
- Taxable it counted
- ₹8.15 L
- Form 122
- No
- TDS deducted
- ₹0
- Whole year
- Months
- 12
- Salary paid
- ₹13.90 L
- Salary it counted
- Taxable it counted
- ₹13.15 L
- Form 122
- TDS deducted
- ₹0
| Employer | Months | Salary paid | Salary it counted | Taxable it counted | TDS deducted | Form 122 |
|---|---|---|---|---|---|---|
| Job 1 | 5 | ₹5.00 L | ₹5.00 L | ₹4.25 L | ₹0 | — |
| Job 2 | 7 | ₹8.90 L | ₹8.90 L | ₹8.15 L | ₹0 | No |
| Whole year | 12 | ₹13.90 L | ₹13.15 L | ₹0 |
Tax for the year, step by step
T = S − SD − D = ₹13,90,000 − ₹75,000 − ₹0 = ₹13,15,000.
R: taxable income is above ₹12,00,000, so there is no rebate and no marginal relief here: R = ₹0.
P adds up the slabs of your regime. H is nil up to ₹50 lakh of taxable income; above it the surcharge is 10%, 15% above ₹1 crore and 25% above ₹2 crore (37% above ₹5 crore under the old regime) of P − R, cut by marginal relief at each step. K is 4% of P − R + H. T and the tax are each rounded to the nearest ₹10 (section 516 of the Income-tax Act, 2025; earlier 288A and 288B); D is that last step.
How the balance is worked out
Tax is slab tax on the taxable income, less the section 156 (87A) rebate or its marginal relief, plus surcharge and 4% cess, rounded to the nearest ₹10. Each employer's TDS is the same sum on the salary it counted. An employer given Form 122 counts everything paid so far and deducts the year's tax less what earlier employers deducted (section 392(5)(c); earlier 192(3)).
About the Job Switch Tax Calculator
When you change jobs during the year, each employer deducts TDS from the salary it pays you, at the average rate on your estimated salary for the year (section 392(1) of the Income-tax Act, 2025; earlier 192(1)). Unless you tell it, a new employer does not know what you earned before, so it gives you the standard deduction, the low slabs and the rebate as if it were your only job. This calculator adds up to four jobs, works out the tax on the whole year, and shows the gap you settle when you file.
How it works
- Enter each job in order: monthly salary, months paid, and any joining bonus or severance.
- Say whether you gave each new employer Form 122 (earlier Form 12B).
- The calculator estimates each employer's TDS on the salary it counted, then the tax on your total salary with one standard deduction.
- The difference is what you owe, or get back, when you file.
The rule people miss
The standard deduction (₹75,000 in the new regime) and the rebate (taxable income up to ₹12,00,000) apply once a year, not once per employer. Two salaries of ₹8 lakh are each tax-free on their own; ₹16 lakh together is not.
What to get from each old employer
- Tax computation sheet for the months you worked there: the salary, exemptions and deductions it counted, and the TDS.
- Payslips for the last 3–4 months, including the full-and-final settlement with any severance, bonus or leave encashment.
- Latest appraisal or salary revision letter, so the salary you report matches what was paid after any raise.
- Form 130 (earlier Form 16) after the year ends; employers issue it by 15 June.
How to tell a new employer
Give the new employer Form 122 (earlier Form 12B) with each earlier employer's name, TAN, period of work, salary and TDS, and attach their TDS certificates. It is optional, but once your employer has it, it deducts the rest of the year's tax from your remaining salary, so nothing piles up for filing (section 392(4)(a) of the Income-tax Act, 2025; rule 204(1) of the Income-tax Rules, 2026).
What this estimate assumes
- Each employer squares up its TDS on the salary it actually paid by your last month there.
- Gratuity and leave encashment paid on leaving are left out: they have their own deductions under section 19 of the 2025 Act (earlier 10(10) and 10(10AA)).
- Professional tax, other income, house-property loss and interest for late advance tax are not included.
- Under the old regime, your deductions were declared to every employer.
- You are a resident below 60.
Sources: the Income-tax Act, 2025 (sections 18, 19, 156, 202, 266, 392 and 403 to 425), as published in the Gazette of India; Forms 122 and 130 from TaxGuru's copies, because incometaxindia.gov.in does not open for automated checks.
References
Job Switch Tax: FAQs
Why do I owe tax after changing jobs when both employers deducted TDS?
What should I get from my previous employer?
How do I tell my new employer about my previous salary?
I worked for three or four companies this year. What changes?
Is a joining bonus taxable?
Is severance pay taxable?
Can I claim the standard deduction from each employer?
When should I pay the balance, and is there interest?
What if my employers deducted more tax than I owe?
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