What is Form 16?

Form 16 is a TDS certificate issued to all salaried individuals by their employers. This statement indicates all the information related to salary credited, tax deducted, and tax computation for a particular financial year. There are 2 parts of Form 16 - Part A & Part B.

Form 16 Part A includes details of taxes deducted from the employees’ salary & paid to the government, TAN & PAN of the employer, Name & address of employer and Name & PAN of the employee. Form 16 Part B contains details of the salary earned, allowances, deductions like HRA exemptions, LTA benefit, section 80C/80D, Relief u/s 89 etc. This part of Form 16 will help you file your returns accurately.

If you’re a salaried individual, you will receive your Form 16 for the FY 2020-21 by 31st July 2021. However, the Central Board of Direct Taxes (CBDT) has extended the deadline to distribute Form 16 from 15th June 2021 to 31st July 2021 due to the COVID-19 pandemic.

How can you get Form 16 from your previous employer?

All employers are bound to issue Form 16 to their employees even if they were in service for a short period and TDS has been deducted.

If you have switched jobs during the year, your previous employer will send you the form digitally on your personal email id. If you do not receive Form 16 by the 31st of July, you can get in touch with the previous employer’s HR or finance department and ask them to send it. Or else, you can download Form 26AS from the income tax website to know the total income credited & tax deducted thereon by your previous employer.

How to calculate total income with multiple Form 16 and file ITR?

  • Starting with gross salary and exemptions, add up the gross salary, HRA exemptions, LTA exemption, and other exemptions from both the Form 16s Part B.
  • Then, look out for duplicate entries like
    You are eligible for the standard deduction of Rs 50,000 and professional tax deduction (if applicable) only once
    Your tax-saving investments if declared to both employers
  • Enter all these details into your ITR form, and the system will automatically recalculate your taxes according to the applicable income tax slab
  • If there is a tax liability after adding up multiple Form 16s, pay the tax due before filing your ITR

CA assisted filing by Tax2win

If you’re still confused about the ITR filing process with multiple Form 16s, you can opt for CA assisted filing by Tax2win. You can hire a personal CA at a nominal cost and get your returns filed accurately with more than 1 Form 16s.

CA Abhishek Soni
CA Abhishek Soni

Abhishek Soni is a Chartered Accountant by profession & entrepreneur by passion. He is the co-founder & CEO of Tax2Win.in. Tax2win is amongst the top 25 emerging startups of Asia and authorized ERI by the Income Tax Department. In the past, he worked in EY and comes with wide industry experience from telecom, retail to manufacturing to entertainment where he has handled various national and international assignments.