Have you also changed jobs during the last financial year? If yes, then you may also face difficulty in filing income tax return. In such cases, taxpayers get more than one Form-16 and due to this they face difficulties in computing the income while filing the return. Today we are going to solve this problem of yours.
There is a problem in these matters
First of all, let us tell you that our financial year starts from April and continues till March of the next year. Is. Now suppose you changed jobs between April and March in the financial year 2022-23, that is, you worked somewhere for a few months and worked somewhere else for the rest of the month, then you will get Form-16 from both the companies. How to file income tax return if there are two or more Form-16 on changing job? Now do you know this?
Form-16 contains this information
The document which is most needed to fill income tax return i.e. ITR, is Form-16. Form-16 is a kind of tax ie TDS certificate, which the employer ie the company gives to its employee. It contains information about income from salary, exemption and deduction and TDS (Tax deducted at Source) deducted from salary during the financial year.
Do this work when you change jobs
If you change jobs in the middle of the financial year, you should first give Form-12B to the new employer. Form-12B contains information about salary received from the old company, exemptions like HRA and deductions like 80C, 80D. TDS is also mentioned in this. The new company will use it to calculate tax liability for the entire year and issue a combined Form-16.
Not given Form-12B, then do this
If you have filed FY 2022 If the job has changed during -23 and Form-12B has not been given to the new company, then you will get Form-16 from both the new and old company. In this case, while filing the return, both of you add the amount shown in the gross salary in Form-16. This will be your gross salary. Similarly, the amount of exemption like House Rent Allowance (HRA), LTA will have to be added from both Form-16, so that the total amount of exemption can be known. Deducting allowances from the amount of gross salary will result in ‘income chargeable under salary head’.
Keep this in mind in case of deduction
Other than salary, if interest from savings account or FD Earning or any other income, then you have to show it in ‘Income from other sources’, after which your gross total income will come. The next step is to claim deductions like 80C, 80D. The amount left after deducting the deduction will be ‘Net Taxable Income’. It is possible that both the companies have taken the same deduction in Form-16, but under the Income Tax Act, you can take the deduction only once on the income. The same rule is applicable in the case of standard deduction as well.
The details must match
After computing the taxable income, calculate the tax liability. If any TDS has been deducted in both Form-16, then show the same in the return. After this, you will know how much tax is made, which you will have to pay. If your TDS is deducted more, but your liability becomes less, then you will get refund. TDS deducted in Form-16 must be matched with Form-26AS and Annual Information available on the Income Tax Department’s website. The amount of TDS deduction should be the same.
Salary slip can make a difference
Many times you have Form-16 received from the new company, but the form of the old company- 16 does not happen. In this case, if you want, you can ask for Form-16 from the old company or in such a case you will need the salary slip of the old company. Income from your salary will be known by adding monthly salary and examination. Apart from this, in Form-26AS you will get the information about TDS deducted from both the companies. By claiming deduction like 80C, net taxable income will be known. 16, only on the basis of that income is shown in the return. Due to this, after some time you get a notice of defective return. This notice comes because you worked in two companies, but the income is shown in only one, due to which it shows a mismatch in income.
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