Dual employment: when you work two jobs simultaneously. What the IT department sees.
"I was on the payroll of two companies for 3 months while transitioning. Is this a problem?"
Dual employment, i.e., working for two employers at the same time, is very common during notice period and garden leave. Both employers calculate TDS individually based on your salary. However, you may end up getting double standard deduction, double 87A rebate or improper slab rate.
Your AIS (IT Department) would clearly indicate salary received from both employers. In case if your ITR includes total salary but individual Form 16 indicates lower slab rates, a scrutiny notice would automatically get generated. It is not illegal, but it needs to be declared and properly calculated in ITR.
What the law says — exact provisions
Section 139(1)
All income from all sources must be disclosed in ITR. Non-disclosure = concealment.
Section 192
Each employer deducts TDS independently. Combined income must be self-calculated.
Section 16
Standard deduction of ₹75,000 is available once per person per year — not per employer.
Section 87A
Rebate available once per person — not applicable if total income exceeds ₹12L.
CA Rishabh's verdict
Bottom line
Disclose both salaries in ITR. Standard deduction is ₹75,000 total — not per job. The AIS will show both anyway. File it correctly the first time.