More than one Form 16? Read on
MUMBAI : With the last date to file ITR approaching, are you worried about your more than one Form 16? Read on to know what you can do
Form 16 is the TDS (tax deducted at source) certificate that your employer issues to you when they deduct TDS on your salary. This form is one of the essential documents that you require as a taxpayer while filing your annual returns.
THE PROBLEM OF PLENTY
If you have switched jobs in a single financial year, you will have more than one Form 16. “Taxpayers in India come across this situation when they switch jobs in a single financial year,” said Gopal Borah partner at NA Shah Associates LLP.
Usually, when you change the job, all tax deducted against your PAN number is recorded, said Mohit Jain, managing partner, Jain Mohit & Co. The employer submits (or is supposed to submit) TDS to the government. So when you change jobs or have multiple jobs, the part A of Form 26AS has multiple entries. There are two deductors with their TAN numbers and information on tax deducted, he said.
If your second employer has no idea about how much you earned from your first employer in a given financial year, the second employer will exempt ₹2.5 lakh for you. When you report both the salaries and file returns, the total tax due will be higher because the ₹2.5 lakh exemption has been given by both the employers. However, such deduction is allowed only once.
HOW TO FILE RETURNS?
You can easily file the return if you do it in a planned manner. Firstly, collect Form 16 from each employer you have worked with during the year and verify the details of the gross salary paid and the Taxes Deducted at Source (‘TDS’). Next, match the TDS deducted by each employer (as per Form 16) with the Form 26AS downloaded from the income tax website. “Prepare a revised income statement and the tax liability. In case you had not disclosed correct details of earlier employment to the current employer, i.e. the salary details or allowable deductions, there might be chances of excess or short deduction of TDS from salary. If there is a shortfall of taxes deducted, you will have to pay self-assessment tax before filing the income tax return,” said Jain.
In case of multiple Form 16, while e-filing, you will have to manually calculate the income from all forms and mention in the right ITR form.
After the income, you have to give details of your deductions. The system will compute the details. Check if new employers have been mentioned. If not, you have the option to add it.