Changed Job? Here's Why You May See Huge Tax Liability

I feel she was not eligible to furnish form no. 15G for the respective years. For claiming income tax refund one has to file income tax returns. The ITR (Income Tax Return) for the financial year 2024-2025 can only be filed now, and she cannot file an ITR for old financial years in a regular course. As per Circular No.11/2024, dated October 1, 2024, one can file an old ITR for claiming refunds for five preceding financial years after complying with the procedure prescribed in the circular.

As per the above circular, your mother has to make an application under Section 119(2)(b) of the Income Tax Act, for condonation of delay in filing old returns. Once the order condoning delay is received, your mother can file ITR online for the five preceding financial years to claim the income tax refund. Please avail of the services of a professional and do not try to do it yourself as this is little complicated.

You can go through the detailed procedure for filing an ITR after receiving the order condoning delay on the following link: incometax.gov.in/iec/foportal/help/how-to-raise-e-filing-service-requests

It is at your discretion whether to furnish Form 12B in respect of salary received by you from the earlier employer, but it is in your own interest to submit Form No. 12B so that appropriate tax is deducted for the salary income of the full year.

Since you have worked with two employers during the year, it is very likely that both employers will grant you a basic exemption and various other deductions, resulting in lower deduction on an overall basis as the basic exemption applies for the year as a whole and not with respect to each employer.

If you include both the income which you will have to while filing your ITR, you may get shocked to see huge tax liability and also interest as well on such shortfall of tax.

It is not that the basic exemption limit has been increased to Rs. 12 lakhs, and income up to 12 lakh has become fully tax-free. Under the new tax regime, the basic exemption limit is Rs. 3 lakhs. It is due to rebate available under Section 87A to resident individual taxpayers whose normal income does not exceed twelve lakhs and who opt for new tax regime that the individual does not have to pay any tax on such normal income. 

Please note that such individuals will have to pay tax at slab rates once the normal income crosses the threshold limit of Rs. 12 lakhs. He will also have to pay full tax on the incomes which are taxed at special rates like long term capital gains even if his normal income does not exceed the threshold of Rs. 12 lakhs.

A senior citizen can claim a deduction of Rs. 50,000 for mediclaim under Section 80D if he opts for the old tax regime. Please note this deduction is not available under the new tax regime.