“I have received a new Form 16. Now, as this is from my new employer, department will not know about my previous salary. So I will only have to pay tax on my current job’s income. And therefore I can save taxes!”
What people don’t understand, is that previous employer may already deducted tax from salary. And this TDS was deposited with the department, hence they know about your previous salary as well.
This creates trouble, as your total salary (from new & old employer) may have exceeded basic exemption limit or may have placed you in a higher tax bracket. Which in turn brings, penalty notice from department & this adds to worry.
But with proper planning & guidance, filing ITR with Multiple Form 16 can be very simple & easy. You can also get in touch with our eCAs & they’ll do all the work for you.
Just follow these simple steps.
Step 1: Collect your Form 16 from different employers. Check the amount of tax deducted in the form of TDS & sum up your total gross salary.
Step 2: Download your Form 26AS & match the TDS amount from Form 16. It is important for TDS details to match as without it you won’t be able to take credit of taxes. If there is any mismatch, inform your employer immediately.
If you want to download your Form 26AS, refer our guide on How to View Form 26AS?
Step 3: Calculate your total income i.e. salary income plus any other income. If you have made any investments, donations etc in Sec 80C to 80U, then claim those deductions. This will give you “Total Taxable Income”.
Step 4: Compute your total tax liability after considering TDS & advance tax (if any). If there is any shortfall in tax liability already paid then you need to pay more. Otherwise you can claim refund of excess taxes paid.
Step 5: You should also check if any interest u/s 234A, 234B, 234C is applicable. Read about interest u/s 234A/B/C
Step 6: After you have determined & paid tax as well as interest liability, you can file ITR. The most common ITR for salaried individual is ITR 1 Sahaj Form. But ITR forms applicability vary from person to person, for that you can refer our ITR form guide
This is how you can file ITR in case you have Multiple Form 16. But in today’s world, it’s very hectic to take out time & do all the computation etc. So there is one more simple way & that is
If you have changed job in the same financial year, then you should inform your new employer about your previous salary & investments made etc. Form 12B will help you in making declaration to new employer about previous salary etc. This will in-turn help employer to determine your total income correctly & deduct TDS accordingly. And after completion of relevant FY, you will be given consolidated Form 16.
Calculating tax liability in case of Multiple Form 16 is very easy given one has proper knowledge. And looking at the problems faced by many people, we decided to solve this issue for once & all. We hope now you can easily search for new opportunities, switch jobs comfortably & not worry about receiving Multiple Form 16.
For more such cool tax & e filing tips, keep following our blog & social media pages. Happy Filing
Everything you Need to Know about Form 16 which is a basic document and a certificate of TDS deducted for every Salaried Person.
Comprehensive Guide containing all Information that you must know while filing of your ITR for FY 2017-18 (AY 2018-19).
Free Income Tax Calculator for Assessment Year (AY) 2018-2019 and AY 2017-2018 with new budget changes.
Calculate HRA exemption based on your salary for AY 2018-19. Make accurate calculations of HRA for employees.
Hire smartest eCA's toFile Your Income Tax Return. CA Assisted Filing of ITR. File your Income Tax Return with confidence and ease.
Tax2win is an efiling portal to prepare and efile income tax return Online. Tax2win helps individuals to file their income tax return.