Switched jobs this year? Here's how to deal with multiple Form 16 while filing ITR

ITR

• Switching jobs in a year leads to multiple Form 16s for tax filing.
• Combine salary and TDS from all Form 16s for accurate ITR filing.
• If Form 16 is missing, use salary slips and Form 26AS/AIS to file returns.

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Switching jobs is common but if the move happens within the same financial year, it leaves you with multiple Form 16s, one from each employer, and complicates tax calculation.

What is Form 16?

Form 16 is as a tax deduction certificate that details an employee’s salary and the tax deducted by the employer in a financial year. Employers are required to issue this document to employees by June 15 every year. This allows salaried taxpayers to prepare and file their income tax returns by July 31. Employees who change jobs during the year must obtain Form 16 from all their employers to ensure accurate reporting of income and taxes paid.

“You should not rely on any single Form 16 while filing your return, instead you should aggregate the total of your salary income from all employers and recompute tax on the combined income. Deductions under Chapter VI-A and the standard deduction must be recalculated carefully, however ensuring the standard deduction is claimed only once, and overall limits are not exceeded,” said Ritika Nayyar, Partner, Singhania & Co.

Steps to follow to file ITR with multiple Form 16s

Collect all your Form 16 certificates

Get Form 16 from each employer you worked for in a financial year. Each form shows how the salary earned and the tax deducted at source (TDS). You have to combine these details to calculate total earnings and taxes.

Download Form 26AS and AIS from I-T portal

Log in to the income tax e-filing site and download Form 26AS (Annual Tax Statement) and the Annual Information Statement (AIS).

Cross-verify that the salary figures and TDS shown in the records match those in Form 16s. Any discrepancy must be corrected before filing.

Calculate your total taxable income

Add up all salary amounts from each Form 16 and include any other income you may have (such as interest or capital gains). Then claim the deductions and exemptions you are eligible for. Deductions should not be counted more than once even if mentioned in multiple Form 16s.

Work out your tax liability

Once you have your net taxable income, calculate the total tax you owe. If TDS is less than what you owe, you may need to pay the difference (self-assessment tax) before filing.

File your return

Enter your consolidated income and tax details in the appropriate ITR form. Upload the information online and complete the submission by the due date. Keep all documents handy for future reference or notice from the tax department.

What to do if a previous employer hasn't issued Form 16?

If your previous employer has not issued Form 16, you can file your return without it. Use your salary slips, appointment or relieving letter, and bank statements to compute salary income, and rely on Form 26AS and AIS to confirm the TDS deposited with the government. As long as the TDS reflects correctly in Form 26AS/AIS, credit will be available even without Form 16.

“You must, however, follow up with the employer since issuing Form 16 is mandatory under tax law, and non-issuance can be escalated if needed. While filing the return, one should report income and TDS exactly as appearing in Form 26AS/AIS to avoid queries from the Income Tax Department,” Nayyar said.