Job hopping is a very common practice these days. Almost, 95% of the taxpayer have various issues when they possess more than one Form 16. Usually two or more Form 16 leads to confusion whether the taxes are paid in synchronized manner or not. It is often noticed that, the individual skips to inform his/her new employer about previous employment.

As per Income Tax Act, 1961, an individual is under an obligation to file his/her return for the entire Financial Year (i.e. April to March of the following year).

Ideally speaking, when an employee leaves his/her employment and joins a new employment, he/she is required to furnish information in respect of his/her salary income and TDS by the previous employer to his/her new employer.

The ultimate responsibility of reporting the valid and correct taxable income from all the sources rests in the hands of the taxpayers.

Let us understand how the problem can be resolved:-

1. Collating information from all the Employers

The individual needs to collate the information and Form 16 from all the employers for the financial year. The details of PAN, TAN, name and address must be reported for each employer in your tax return.

2. Consolidating of Salary of the Employers

When an individual changes his/her jobs within a short period of time, the employer may not have had the chance to deduct any TDS amount. We should remember, that salary is taxable irrespective of whether TDS is deducted or not, so it is advisable to include the amount of salary in the return.

3. Verification of Form 26AS

Form 26AS consists of relevant data of TDS deducted by each employer. The individual should always verify Form 26AS for TDS entries. Further, the individual is entitled to take credit of TDS deduction against the total tax dues.

4. To claim Deductions

The employers begin the exercise of collecting proofs of deductions usually in the month of February or March. Few of the individuals quit their jobs before this period, which states that the employer has not allowed the benefit of deductions. Deductions are allowed under section 80 such as 80C, 80D, 80G and other claims directly in return.

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