If you have changed jobs during the year , you may have more than one form 16, i.e. Form 16 from each employer you have worked with. Filing of Income Tax return in case of multiple form 16 can be confusing and time consuming. However, you can easily file the return if you do it in a planned manner. The following will help you How to file income tax return with 2 form 16.
1. Collect Form 16 from each employer you have worked with during the year and verify the details of the gross salary paid and the Taxes Deducted at Source (‘TDS’) thereon respectively.
2. Match the TDS deducted by each employer (As per Form 16) with the Form 26AS downloaded from income tax website. Any discrepancy in the details of TDS should be intimated to the concerned employer immediately so that the necessary correction can be done.
3. Prepare revised income statement and the tax liability thereon.
4. In case you had not disclosed correct details of earlier employment to the current employer, i.e. the salary details or allowable deductions, there might be chances that excess or short deduction of TDS from salary.
5. If there is a shortfall of taxes deducted, you will have to pay self-assessment tax before filing the income tax return
6. Also, you’ll have to determine the interest under section 234A, 234B, and 234C in case there is shortfall of taxes. You’ll have to pay such interest along with the self assessment tax.
7. Once, the self assessment tax and interest is paid you are required to file relevant income tax return. As a salaried individual, the relevant tax return forms for the A.Y 2017–18 are ITR-1 and ITR-2.
8. In case of excess TDS, you can claim refund of the same by filing income tax return.
9. Disclose both your salaries in the correct ITR (i.e. ITR 1), disclose all the exemptions under section 10 and other deductions, aggregate both the salaries, include any other income (eg. saving bank interest), set off any loss (eg. house property loss) and take deductions under Chapter VI-A, such as 80C, 80D, 80TTA, and check your final tax liability.
If you have tax payable, pay it, along with applicable interest, put in the details and file your return so you can easily come to know How to file income tax return with 2 form 16
10. Or you may hire an online tax consultant who will do it all professionally for you (for a small fee, ofcourse), without you having to worry about anything.
Consolidated Form 16
You can also file your tax return based on consolidated Form 16 issued by the current employer. Your current employer can issue a consolidated Form 16 if you have provided the salary details of your previous employment in the Form 12B. In this case, the current employer will calculate TDS on your total salary income.