How to File ITR with Multiple Form 16 (Multiple Employer) ?

Changing jobs in a financial year is a common matter but may cause difficulties in completing the taxes correctly. The said ambiguity arises from the fact that if you worked for more than one employer during a financial year, the employers involved shall issue more than one Form 16-one Form 16 from each employer. In such cases, it is a must for the income of all sources to be aggregated together and a single Income-Tax Return (ITR) file.

What is Form 16?

Form 16 is a certificate issued by an employer, evidencing the details of salary paid and deductions made for TDS during the year.

When you switch jobs, each employer issues a separate Form 16 for the period you worked with them.

Why I Should Combine Form 16s

The Income Tax Department taxes total income and not income from any one employer. If one fails to report salary from all employers, one may receive:

• Tax notices
• Penalties
• Interest for unpaid tax

Steps to File ITR With Multiple Form 16s

1. Collect All Form 16s

Get Form 16 from each employer you worked with during the financial year. Each includes details such as:

• Salary paid
• TDS deducted
• PAN, TAN details

2. Consolidate Total Salary Income

Add the gross salary as per each Form 16. Also combine other salary components such as:

• HRA
• Bonus
• Leave encashment
• Perquisites (if any)

Try to Cross Check the total TDS credited from Form 26AS or AIS (Annual Information Statement).

3. Claim Deductions

Do not claim deductions under Section 80C, 80D, 80G, etc. twice. If claimed with one employer, then make the necessary adjustments while filing ITR.

4. Calculate Total Tax Liability

After combining incomes and subtracting deductions:

• Calculate your total taxable income.
• Calculate total tax payable.
• From this deducted TDS already paid by both employers.

If a tax is payable, pay it before you file your return.

5. Choose the Correct ITR Form

• ITR-1 (Sahaj): A rejoinder for taxpayers salaried individuals, barring those with capital gains.
• ITR-2 or ITR-3: In case you have other incomes like capital gains or business income, or own multiple house properties.

6. Filing of ITR Online

• Log in to the Income Tax e-Filing portal.
• Fill in the salary details manually or upload Form(s) 16 through any tax-filing platform.
• Verify all pre-filled entries.
• Pay any remaining dues through the challan.
• Submit and e-verify your ITR.

Salient Tips

• Check Form 26AS and AIS for unmatched credits of TDS.
• Seek a CA's help or use a tax-filing software especially in case of complicated cases.
• Keep all proofs (salary slips, investment proofs, Form 16s) handy for future reference.

Final Thoughts

With multiple Form 16s, filing ITR is not complicated if you follow the right procedure. The intent is to place the responsibility on the taxpayer to fully declare all sources of income. Being thorough and honest is to keep yourself on the right side of law and hassle-free in the future with the Income Tax Department.