Filing income tax returns with multiple Form 16s can be challenging due to job changes or multiple employments. This guide simplifies the process, detailing steps to consolidate income, verify TDS, and accurately file your ITR online.
Filing income tax returns (ITR) can be a straightforward process when you have all the necessary documents at hand. However, the task can become complicated if you have multiple Form 16s due to changing jobs or working multiple jobs in a financial year.
Here’s a guide to help you understand the process
Understanding Form 16
Form 16 is a certificate issued by an employer detailing the tax deducted at source (TDS) from your salary.
It is divided into two parts:
Part A: Contains details of the employer and employee, including names, addresses, PAN and TAN details, and summary of tax deducted and deposited quarterly.
Part B: Contains details of salary paid, deductions allowed under the Income Tax Act, and tax payable.
When you switch jobs, each employer issues a separate Form 16, which means you might end up with multiple Form 16s for a single financial year.
Steps to file ITR with multiple form 16s
Collect all Form 16s
Ensure you have Form 16 from each employer you worked for during the financial year. Verify that the details in each form are correct and consistent.
Consolidate income
Sum up the salary income from each Form 16 to arrive at the total income for the financial year. Also, include any other sources of income like interest from savings accounts, rental income, etc.
Compute total taxable income
Use the consolidated income to calculate your total taxable income.
Deduct eligible exemptions and deductions under sections like 80C (investments), 80D (health insurance), etc.
Adjust for deductions
If your deductions have been declared to multiple employers, ensure you don’t claim the same deduction multiple times.
Cross-check the total deductions claimed to avoid discrepancies.
Verify TDS details
Match the TDS figures in your Form 16s with Form 26AS (Tax Credit Statement) available on the income tax department’s website.
This ensures all the TDS deducted by employers is correctly credited to your PAN.
Calculate tax payable or refundable
Compute the total tax payable based on your taxable income.
Compare it with the total TDS already deducted. If TDS is more than the tax payable, you are eligible for a refund.
If it’s less, you need to pay the balance tax.
File ITR online
Login to the income tax e-filing portal (www.incometaxindiaefiling.gov.in).
Select the appropriate ITR form based on your income sources (usually ITR-1 for salaried individuals).
Enter the consolidated details of income, deductions, and TDS.
Review and submit
Double-check all the details entered in the ITR form. Ensure there are no errors or omissions.
Once reviewed, submit the form online.
You will receive an acknowledgment number on successful submission.
Source: https://www.cnbctv18.com/personal-finance/income-tax-return-filing-itr-how-to-file-with-multiple-form-16-step-by-step-guide-online-19431593.htm
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