New Delhi, July 20 -- A job switch during the financial year can lead to an unexpected tax liability, even if both employers have deducted TDS correctly. This happens because each employer calculates TDS only on the salary it pays, while your final tax is computed on your total annual income.

Dev Patel, Financial Advisor at 1 Finance, highlights a case in which an employee incurred a tax liability of Rs.1.69 lakh despite both employers correctly deducting TDS.

Explaining the case on X, Patel said, "A client of mine switched jobs last August."

Patel said the employee received a salary of Rs.7 lakh from the previous employer between April 2025 and July 2025, while the new employer paid Rs.18 lakh between August 2025 and March 2026. The p...