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ITR Filing After Job Change: The Income Tax Return (ITR) filing season has begun, and millions of salaried individuals are busy gathering their necessary documents. However, those who changed jobs during the financial year need to exercise extra caution when filing their ITR. Such employees may receive multiple Form 16s; failing to provide accurate information could lead to issues like outstanding tax dues or notices from the tax department later on.

Is it common to receive more than one Form 16?

Yes, it is quite common if you changed jobs mid-year. For instance, suppose you worked at one company from April to September and joined another in October; both companies will issue separate Form 16s covering the respective periods of employment. It is important to note that even after an employee leaves, the previous company remains responsible for providing the Form 16.

What exactly is Form 16?

Form 16 is a document that contains comprehensive details regarding an employee's salary, tax deducted at source (TDS), exemptions, and deductions. It is considered one of the most crucial documents when filing an ITR.

What should you do if you have multiple Form 16s?

There is no need to panic if you have received more than one Form 16. You do not need to file separate returns.

Keep these points in mind:

Collect the Form 16s from all the companies you worked for.
Add up the salary figures mentioned in all the Form 16s.
Consolidate the TDS deducted by the different companies.
Include other sources of income such as bank interest, capital gains, etc. Make sure to reconcile the information with Form 26AS, AIS, and TIS.
File a single ITR by aggregating your total income.

What is the biggest mistake made by those who switch jobs?

Many employees do not disclose their income from their previous job to their new company. Consequently, the new employer deducts TDS only on the salary they pay. This can result in lower tax deduction throughout the year, potentially leading to an additional tax liability when filing the ITR. To avoid this, employees can provide details of their previous salary and TDS to the new company by submitting Form 12B. Additionally, one should not make the mistake of claiming benefits under Sections 80C, 80D, 80G, HRA exemptions, and the standard deduction more than once; these benefits can be availed only once in the final tax computation. Even if you have not received Form 16 from your previous company, you can still file your ITR using salary slips, bank statements, Form 26AS, and AIS. However, it is important to contact your previous employer for Form 16, as issuing it is their legal obligation.