As the deadline for filing your Income Tax Return ( ITR ) approaches on July 31, 2024, it’s crucial to be prepared. Filing an ITR is typically straightforward for salaried individuals because they receive Form-16 from their employer, which details their salary and tax deductions . However, what should you do if you receive two different Form-16s? Here’s a guide to help you navigate this situation.
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Why Might You Receive Two Form-16s ?
Form-16 is a document issued by your employer that outlines your salary and the taxes deducted from it. If you have worked for two different employers within the same financial year , each employer will issue a Form-16. This means you will have two Form-16s for that year.
More Form-16s for Multiple Jobs
If you’ve changed jobs multiple times within a year, you will receive a Form-16 from each employer. For instance, if you switched jobs three times in one financial year, you would receive three Form-16s, one from each company.
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Understanding Form-16
Form-16 is crucial as it shows the tax deducted at source ( TDS ) and the deductions you have claimed. It includes details of your salary, the tax deducted, and various deductions under the Income Tax Act.
Breakdown of Form-16
Form-16 is divided into two parts: Part A and Part B.
- Part A: This section contains the employer’s TAN and PAN, the employee’s PAN, the employer’s and employee’s address, the assessment year, and the period of employment. It also includes details of the TDS deposited with the government.
- Part B: This part is essential as it provides a detailed breakup of your salary. It includes your gross salary, net salary, house rent allowance (HRA), contributions to your provident fund (PF), professional tax, and deductions under various sections of the Income Tax Act. It also lists your investments, medical insurance contributions, savings plan investments, and other tax exemptions.
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Filing ITR with Multiple Form-16s
When filing your ITR with multiple Form-16s, follow these steps:Consolidate Information: Gather all Form-16s from your previous employers.Calculate Total Income: Combine the income details from all Form-16s to determine your total income for the financial year.Sum Up Deductions: Add up all the deductions and tax exemptions mentioned in all Form-16s.Check TDS: Ensure that the TDS details are correctly mentioned and match your total income.File Accurately: Use the consolidated information to file your ITR accurately.
Receiving multiple Form-16s is common for individuals who change jobs within a financial year. It’s essential to consolidate all the information and file your ITR correctly to avoid any discrepancies. By understanding the contents of Form-16 and following the outlined steps, you can ensure a smooth and accurate tax filing process.
