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Form 16 is one of the most important documents you need if you wish to file income tax* returns in India. The process of filing income tax if you have multiple Form 16 largely remains the same, except that you will have to collate the income you have earned and the TDS that was deducted by your employers.
A Form 16 is one of the most important documents that a taxpayer needs to pay their taxes* in each financial year. An employer issues a Form 16 if they have deducted a tax on behalf of the government from the salary of the employee. There is a deadline by which employers must provide Form 16 to their current and previous employees.
Many times, an employee gets confused while filing returns if they have more than one Form 16 during a particular financial year. While the process of filing the ITR remains largely the same, there are some differences that you might witness. ITR filing with multiple Form 16 means that you will have to collate your income and calculate the TDS that your employers deducted.
Read on to find more information about ITR with multiple Form 16.
Table of Content
How Can You Get Multiple Form 16?
A Form 16 is issued by your employer for the money that you earned in one financial year. However, in case you change your job and work for multiple employers in one financial year, you will have to undertake filing your ITR with multiple Form 16.
For instance, Shweta worked for ABC company from 3rd April 2022 to 30th July 2022. Then, she switched companies and started working for XYZ company. She continues to be employed with XYZ company until 31st March 2023. Thus, to file the ITR for the financial year 2022-2023, Shweta will have to make use of multiple ITRs.
Does the Income Tax Return Filing Process Change Due to Multiple Form 16?
Well, the answer is partially yes.
Yes, because you will now have to collate the income that you have earned and TDS that has been deducted by your employers using more than one Form 16. However, after you are done with this, the other steps of filing the return remain the same.
Process of ITR Filing with Multiple Form 16
If you have changed your job in a financial year, you will have multiple Form 16. Here are the steps that you need to take for ITR filing with Multiple Form 16:
- Step 1: Choose the right ITR form that is applicable to you. For individual taxpayers, ITR Form 1 has to be used.
- Step 2: Now, you will have to give important details like your name, contact number, address, etc.
- Step 3: Calculate the total income that you have earned during the fiscal year and enter the amount into the ITR form. This is the time when you make use of the multiple Form 16.
Add the total income that you have earned from multiple employers manually. There are many websites that enable you to upload multiple Form 16 to calculate the income and collate all the other information automatically. - Step 4: Add the details of the TDS from your salary and other allowances like travel allowance, house rent allowance, etc.
- Step 5: In the last step, the income tax that you might have to pay will be calculated. After you have made the income tax payment, you will be able to file the ITR.
Thus, this is how you file an ITR with two Form 16s. To inform the current employer about your previous investments and earnings, you can make use of Form 12B. The Form 12B will help your current employer understand the tax deductions and will also help them in the consolidation of salaries of all the employers.
What Can You Do In Case Your Previous Employer Has Not Issued a Form 16?
There might be a situation in which your previous employer did not provide you a Form 16 or if they went bankrupt.
If this is the case, you can follow the below-given steps to file your ITR:
- Step 1: Calculate the breakup of the salary and the deductions as per the payslips that have been provided by the last employer.
- Step 2: Consolidate the income you have earned and deduct any exemptions such as travel allowance, house rent allowance, etc.
- Step 3: Claim deductions if you have made any investments stated under Section 80C to Section 80U.
- Step 4: Now, calculate the total tax liability and deduct the amount of TDS that has been paid by the employers as mentioned in Form 16.
- Step 5: In case there is any tax amount that is due, you will have to make the payment. You can cross-check your deductions using the Form 26AS.
How Can I File an ITR?
Here are the steps to file an ITR:
- Step 1: Collect the required documents, such as Form 16, salary slips, investment certificates, etc.
- Step 2: You can cross-check your deductions using Form 26AS. In case of any discrepancy, rectify it.
- Step 3: Calculate the income that you have earned in that fiscal year.
- Step 4: After this is done, understand the tax that you have to pay as per the tax slab applicable to you.
- Step 5: Now, calculate the tax you are required to pay.
- Step 6: Once you have paid all the taxes, you can file your ITR and claim any refunds.
- Step 7: The last thing that you need to do is verify the ITR that you have filed. This can be done electronically. Also, you will get an acknowledgement.
After the ITR has been verified, the refund will be processed.
Thus, this is the income tax e-filing process that you must understand properly.
Conclusion
Income tax e-filing, even with multiple Form 16, is an easy process if you understand the steps carefully. Use Form 12B to let your current employer know about the salary given to you by your previous employer. It will make filing the ITR easier for you.
If you were not provided Form 16, you can use salary slips to understand the income that you earned, your deductions, and other things. Ensure that you make an investment plan in the financial year that will help you save on taxes.
