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File ITR With Multiple Form 16
Form 16 is a mandated document that is required while filing the ITR. The due date to issue Form 16 for FY 2022-23 (AY 2023-24) is June 15, 2023. The employer issues form 16, which contains details of tax deducted by them from the employee’s salary.
Why e-File ITR with Multiple Form 16s?- 2 Common Cases
The employer issues Form 16 to the employee, reflecting the earnings made in one financial year. However, there are a few conditions where it becomes mandated to file multiple Forms 16:-
- When a person has switched jobs in the same financial year.
- When a person is working simultaneously with more than 1 employer.
Many people think that receiving Multiple Form 16 is trouble. And to avoid receiving them, they try to hide income in the following way:
“I have received a new Form 16. As this is from my new employer, the 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!”
People don’t understand that previous employers may already deduct tax from their salary. And this TDS was deposited with the department; hence they also know about your previous salary.
This creates trouble, as your total salary (from new & old employers) may have exceeded the basic exemption limit or may have placed you in a higher tax bracket. This, in turn, brings penalty notice from the department & which adds to worry.
But with proper planning & guidance, filing ITR with Multiple Form 16 can be very simple & easy. You can also contact our eCAs & they’ll do all the work for you.
Does filing ITR with multiple Form 16 varies from filing with one?
Yes, there is a little difference while filing ITR with multiple Form 16, i.e. you are required to collate your income earned and TDS deducted from multiple sources/employers. Other than this, the remaining process to file ITR is the same.
How to file ITR in case you have Multiple Form 16?
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. TDS details need to match, as without it, you won’t be able to take credit for 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, you need to pay more. Otherwise, you can claim a refund of the 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 individuals is ITR 1 Sahaj Form. But ITR forms applicability varies 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
Consolidated Form 16
Suppose you have changed jobs in the same financial year. In that case, you should inform your new employer about your previous salary & investments made, etc. Form 12B will help you declare to your new employer about your previous salary, etc. This will, in turn, help the employer to determine your total income correctly & deduct TDS accordingly. And after completion of the relevant FY, you will be given consolidated Form 16.
What if the previous employer refuses to provide Form 16?
This situation arises mostly in cases where you haven’t taken Form 16 from the previous employer or in case the previous company became bankrupt. If you haven’t received Form 16, you must refer to your salary payslips, bank statements, tax-saving investment proofs, home loan certificates, education loan certificates, and Form 26AS, etc, for filing income tax returns. While payslips contain details of your income, like basic salary and allowances, Form 26AS contains the details of all your tax deducted and taxes paid.
The Form 26 AS can be viewed/downloaded from the Income Tax Department’s online portal i.e., https://www.incometax.gov.in/iec/foportal
Frequently Asked Questions
Q- What is Form 16?
Form 16 is a certificate issued by an employer to its employees that contains details of the salary earned by the employee during the financial year and the tax deducted at source (TDS) on that salary.
Q- Why would someone have multiple Form 16s?
It is possible to have multiple Form 16s if an individual has worked for more than one employer during a financial year or if they have changed jobs during that period.
Q- Can I file my income tax return with multiple Form 16s offline?
Currently, the Income Tax Department requires individuals to file their income tax returns electronically. Offline filing options are no longer available for most individuals.
Q- What if there are discrepancies or errors in the Form 16s?
If you notice any discrepancies or errors in the Form 16s issued by your employers, you should contact them to rectify the issues and obtain corrected forms. It is important to ensure that the details mentioned in Form 16s are accurate before filing your income tax return.
Q- What if I have any additional sources of income apart from my salary?
If you have additional sources of income, such as income from house property, capital gains, or other investments, you need to consider those sources and calculate your total income accordingly. The income from different sources must be reported and included in your income tax return.
Q- Should I keep a copy of all the Form 16s for future reference?
Yes, keeping a copy of all the Form 16s issued by your employers for future reference is advisable. These documents serve as proof of income and tax deducted at source and may be required for various purposes, such as loan applications or verification during income tax assessments.