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I simply can’t believe that I made such a stupid mistake.
Recently, when I changed my job, I ensured that I obtained the final salary settlement statement from my previous employer well before I joined my new job. That was good thing because I was able to submit this statement during the joining formalities at my new employer. And then I completely forgot about it. I didn’t verify even once my income tax computation over the four-odd months that I’ve been at my new job.
Come January, when I received an email from payroll asking for proof of investment for income tax savings, I sat down to take a look at the latest income tax computation. And to my utter horror, the income from my previous employer hadn’t been included in the income tax computation.
I immediately crunched numbers in an Excel spreadsheet and to my dismay I discovered a huge gap in my income tax liabilities. If my calculations are correct, I owe additional income tax somewhere in the upper five figures and this will be deducted from my salary over the next three months.
Last financial year, this ruling ruined my salary.
This year, my own stupidity is going to ruin my salary. With all the goals that I’ve set for 2011, it’s going to be one tough ask.
Another lesson learned the tough way.
When you change your job, make sure that your new salary and income tax computation also include the figures from your previous job.
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