Form 16 is a certificate issued by an employer to an employee who provides details in respect of salary earned by the employee and tax deducted at source by the employer. It’s a TDS certificate issued by the employer to the employee in Form 16 and if the employer has not deducted any tax at source, it is not necessary to issue Form 16.
Every salaried individual are in a rush to file their Income Tax Return as the month of June has commenced. One must be aware of the fact that 31st July is the last date for filing Income Tax Return for Individuals and also Form 16 is a mandatory requirement in respect of filing return.
An employee can have multiple Form 16 in any of the following two situations:
- Has changed his job during the same financial year.
- Is working with multiple employers simultaneously.
Eligibility to file ITR -1/ Sahaj:
The following categories of persons are eligible to file Income Tax Return through ITR- 1/ Sahaj –
- Individuals with salaried or pension income
- Income earned from house property
- Income from other sources including FDs interest rate and excluding speculation income
- Where income of spouse or minor is clubbed with assesse
How to file return through multiple Form 16?
1. If the employee has changed his job during the same financial year â€“ If any individuals change his current job to another one, he must furnish details in respect of all Form 16s at the time of filing Income Tax Return. Also the employee can either declare the details of past Form 16 to the current employee or if he doesn’t want to disclose his income to the present employer then he can mention the consolidated income of all the Form 16 at the time of filing IT return.
2. Is working with multiple employers simultaneously – If an employee is working with multiple employers at a time he/ she needs to file all the Form 16 he has at the time of filing return. In this context, a consolidated Form 16 is inappropriate as because every employer has different TAN numbers. Every employee is thus required to file all the separate Form 16 he holds. Thus at the time of filing return the total aggregate salary of both the company shall be considered and tax will be paid simultaneously and refund will be provided as required.
In order to avoid mistake in respect of TAN No., PAN No, address details or any other relevant information are required at the time of filing return, one must review Form 16 with awareness and fill the required details.
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