When you should look for a change in the job
- When you start feeling that the current position you are holding in the company doesnt offer any future scope to grow
- When you start feeling that the managerial qualities which you have gathered in your past qualifications i.e MBA or Engineering or any other stream is not adequately utilized by the company & treating you as a mere dock boy
- When you start reeling your salary package CTC & feel you need a salary hike looking at the efforts you are putting to make your company grow
- When you get bogged down by sales to retail clients & you are not able to meet your sales target & look to change the sector. This type of situation mainly happens in Financial sector
Financial Do's & Dont's while changing your Job
1. Collect Form 16 from your Ex Employeer
The first & the foremost thing while changing your career is not forget collecting your Form 16 from your previous employeer at the end of financial year April of every year to make sure that you are not double taxed by both the employeers & also helps you in calculating the right amount of tax & helps in tax planning
2. Closing your Bank account with the previous employeer
Never ever forget to do this as holding multiple bank accounts with two banks is never advisable because of various reasons. The most important one of them is ofcourse being the bank charges levied to you every quarter for non maintenance of average quarterly balance (AQB). Your salary account would be converted into a normal savings account after 6-9 months. So it would no more be a zero balance account now. Different banks charges different amounts for non-compliance of AQB of Rs 10,000. HDFC Bank charges Rs 827 every quarter including service tax for non maintenance of average quarterly balance.
3. Tax Implications
If you are leaving your job in the middle of financial year & you dont declare your earlier deductions to your HR of new company which you have joined, the new company would use the same amount to calculate your tax liability. This may lead to double taxation
4. Invest Your Employee Provident Fund
I would always advise you to withdraw from existing EPF from your old company & invest in balanced mutual funds or invest in mutual funds (equity oriented) which in a long run give better returns than EPF returns of 8%
I have added my viewpoint of do's & donot's while changing a job, if you have your viewpoints in same regard, you are most welcome to add a comment
If you like reading this article, also read
1. Collect Form 16 from your Ex Employeer
The first & the foremost thing while changing your career is not forget collecting your Form 16 from your previous employeer at the end of financial year April of every year to make sure that you are not double taxed by both the employeers & also helps you in calculating the right amount of tax & helps in tax planning
2. Closing your Bank account with the previous employeer
Never ever forget to do this as holding multiple bank accounts with two banks is never advisable because of various reasons. The most important one of them is ofcourse being the bank charges levied to you every quarter for non maintenance of average quarterly balance (AQB). Your salary account would be converted into a normal savings account after 6-9 months. So it would no more be a zero balance account now. Different banks charges different amounts for non-compliance of AQB of Rs 10,000. HDFC Bank charges Rs 827 every quarter including service tax for non maintenance of average quarterly balance.
3. Tax Implications
If you are leaving your job in the middle of financial year & you dont declare your earlier deductions to your HR of new company which you have joined, the new company would use the same amount to calculate your tax liability. This may lead to double taxation
4. Invest Your Employee Provident Fund
I would always advise you to withdraw from existing EPF from your old company & invest in balanced mutual funds or invest in mutual funds (equity oriented) which in a long run give better returns than EPF returns of 8%
I have added my viewpoint of do's & donot's while changing a job, if you have your viewpoints in same regard, you are most welcome to add a comment
If you like reading this article, also read
- Best Mutual Funds in India
- SIP in Mutual Funds
- Dont Trade but invest for simple reasons
- SIP in Mutual funds is the best
Regards
Mayank Gupta
mayankportfoliomanager@yahoo.com
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