When you change job in a financial year you need to make sure that the deductions and exemptions regarding tax liability are made only once. In our article Changing Jobs and Tax, Form 12B We explained how basic exemption is accounted by two employers, the correct way to calculate tax when one switches jobs, how Form 26AS will have multiple entries, how Form 12B may be used to declare income from previous employer. But what if one does not declare income from previous employer to new employer by filling Form 12B. Then he will have Form 16 from each of the employer. Another way where one can have multiple Form 16 is when one is working for multiple employers. In case of multiple Form 16 How to fill the Income Tax Return?
Table of Contents
Instructions to fill Salary Details in ITR
From Instructions to fill Fill ITR2 (pdf)
Schedule-S : In case there were more than one employer during the year, please give the details of the last employer. Further, in case, there were more than one employer simultaneously during the year, please furnish the details of the employer from whom you have got more salary. Fill the details of salary as given in TDS certificate(s) (Form 16) issued by the employer(s). However, if the income has not been computed correctly in Form No. 16, please make the correct computation and fill the same in this item. Further, in case there was more than one employer during the year, please furnish in this item the details in respect of total salaries from various employers. In the case of salaried employees, perquisites have to be valued by the employee in accordance with the notification No. SO.3245(E) dated 18.12.2009, for the purposes of including the same in their salary income
Form 26AS in case of Multiple Employers
How would the Government know that I have switched job or I have multiple jobs? All tax deducted against your PAN number is recorded. The employer submits(or is supposed to submit) TDS to Government. So when you change jobs or have multiple jobs , the partA of Form 26AS has multiple entries as shown in excerpt from image below. There are 2 deductors with their TAN and information on tax deducted. To know more about structure of Form 26AS you can read our article Understanding Form 26AS and What to Verify in Form 26AS? Click on image to enlarge
Filling Salary Details in ITR for an Individual
An individual with Salary typically fills ITR1 or ITR2. Difference between the two forms is shown in table below. Our article Which ITR Form to Fill? explains difference in various ITR forms. Based on types of income earned one should choose the appropriate ITR form. If you have to choose between ITR1 and ITR2 please note that Scope of ITR-1 (Sahaj) form has been reduced since AY 2013-14 significantly. So please make sure that you are filling the correct ITR. In case of doubt Please go for ITR2 . Yes it is longer than ITR1 and seems complicated (it’s not Sahaj which means easy in Hindi) but it asks for more details .
|ITR-1 SAHAJ||Individual||1. Income from salary/pension: or
2. Income from one house property
3. Income from other sources( excluding winnings from lottery and income from races horses)
|ITR-2||Individual/HUF||1. Income from salary/pension
2. Income from house property(s)
3. Income from other sources( excluding winnings from lottery and income from races horses)
4.Income from Capital Gains.
5. Income from foreign assets.
They should not have Income from Business or Profession.
Our article How To Fill Salary Details in ITR2, ITR1 explains how to fill the Salary details from one company by individual in Income Tax Return, ITR1 and ITR2 .
ITR1 has only one field for filling Income From Salary as shown in image below. So the Income chargeable under the head Salaries in your Form 16( point 6 in Form 16) is filled in Income from Salary in ITR1,(it’s not the Gross Salary which is point 1 in Form 16). Our article Understanding Form 16: Tax on income explains Form 16 in detail.
While in ITR2, a separate section called Schedule S has to be filled in which asks for more details. For an individual with Form 16 following information has to be filled in.
- Fill in row numbered 1 Salary (Excluding all exempt/non-exempt allowances,perquisites & profit in lieu of salary ) in Schedule S a from (a) of Gross Salary in Form 16 – Professional Tax – HRA
- Fill in row numbered 2 Allowances exempt under section 10 :Total of all the allowance exempt(ex: House Rent Allowance, Transport Allowance,) from Total of (2) Less : Allowance to the extent exempt u/s 10 . This consists of Allowances shown in Form 16 + HRA calculated
- Fill in row numbered 4 Value of Perquisites in Schedule S a from (c) (b) Value of perquisites under section 17(2) 21600.00 (as per Form No:12BA,wherever applicable) in Form 16.
- Fill in row numbered 5 Profits in Lieu of Salary in Schedule S a from (c) Profits in lieu of salary under section 17(3) 0.00 (as per Form No: 12BA,wherever applicable) 5(in color maroon) in Form 16.
Multiple Form 16
A person can have multiple Form 16 in two cases
- A person switches a job in the same financial year.
- A person is working with multiple employers simultaneously
If Form 16 is not issued by the one employer as there was no tax deduction or for any other reason,you should yourself consider the salary received and tax deducted. You can get this information from the monthly salary slips or or salary statements. This information along with the Form 16 issued by the other employer(s) can be used to file the personal tax return.
For Filling employer details in ITR1 or paper ITR2 for Multiple Form 16
ITR1 has just one row for filling in the details as shown in image of filling Salary Details in ITR1 above and no employer details. So you to do calculation yourself of consolidated income, tax deduction etc. So your consolidated salary would be sum of Income chargeable under the head Salaries (point 6 in your Form 16) from all your Form 16. Use the sum as salary in income tax calculations. You can check with our income tax Calculator .
For filling ITR2 in paper or offline form(not online,excel or java utility) there is only one section to fill in employer details. Please remember that e-Filing of Returns/Forms is mandatory for Any assessee having total income of Rs. 5 Lakhs and above from AY 2013-14 and subsequent Assessment Years. For more details read our article Income Tax for AY 2014-15:Tax slabs, ITR Forms
Income tax instructions are as follows
- A person switches a job in the same financial year : In case there were more than one employer during the year, please give the details of the last employer. So In Name and Address of employer please fill in details of employer from your last employer i.e current employer.
- A person is working with multiple employers simultaneously : please furnish the details of the employer from whom you have got more salary. So In Name and Address of employer please fill in details of employer from whom you have got more salary.
Further, in case there was more than one employer during the year, please furnish in this item the details in respect of total salaries from various employers
For Salary details you need to add both the salaries , see if exemption is take care of twice and calculate tax.
Filling Salary details in ITR2 for Multiple Form 16
Excel utility of ITR2 allows you to add more employers by clicking on Add Salaries as shown in image below (marked by red box) Click on image to enlarge.
After clicking Add Salaries Another set of details is added which can be used for filling details from second employer as shown in image below. So fill in Information from different Form 16 in different sections.
Check if you have to pay Self Assessment Tax
While calculating income tax especially if your new employer has not taken care of old employer tax details, you might end up owing tax i.e you have paid less tax than what is required. In such a case Please pay your tax due by filling Challan 280 Our article Challan 280: Payment of Income Tax explains in detail. Pay the tax due. If you find it difficult please contact a Our article How to file Income Tax Return Online : Incometaxefiling,CA,efiling Websites compares various options like CA and TRPS.
Tax Return Preparer Scheme(TRPS) seeks to assist small and marginal taxpayers in preparing and filing their tax returns. Tax Return Preparers (TRPs) are professionally trained individuals by Income Tax Department who can come to your doorstep and assist you in filing your income tax return. TRPs will receive 3% of the tax paid on the returns prepared & filed for every new assessee in the 1st year (subject to a maximum of Rs. 1000), 2% in the second year and 1% in the third year and Rs. 250 for the returns prepared & filed for the old assessees.
You can also refer to our articles E-Filing of Income Tax Return, Fill Excel ITR form : Personal Information,Filing Status for how to fill Excel ITR1 Form. All articles are arranged at our website bemoneyaware.com/income-tax/
Disclaimer:Please do not construe this as professional financial advice. You should consult a qualified financial person(tax advisor/financial advisor) prior to making any actual tax or investment or trading decisions. We accept no liability for any interpretation of articles or comments on this blog being used for actual investments/taxation purposes!
- Viewing Form 26AS on TRACES
- Income Tax Overview
- Paying Income Tax Online: Challan 280
- Changing Jobs and Tax, Form 12B
- E-Filing of Income Tax Return
- Fill Excel ITR form : Personal Information,Filing Status
When you join a new organisation, you should furnish your TDS details from the previous employer to your current employer. This will help your current employer in deducting tax accordingly. If you haven’t done please make sure that deduction and exemptions are NOT availed more than once.