New Delhi, Jan. 27 -- Switching jobs often brings excitement-a new role, better pay, fresh challenges. But it also comes with its share of challenges, and one of the trickiest is serving out your notice period. For many employees, the solution seems simple: allow the employer to deduct the penalty for skipping the notice, especially if the new company agrees to compensate you. Problem solved, right? Not quite. What most employees fail to realize is that this workaround can trigger an unexpected tax burden, leaving them paying taxes on income they never actually received.

Skipping a notice period doesn't just mean forfeiting salary-it can also lead to double taxation. Employees are taxed both on the salary deducted by their previous emplo...