When to use Multiple Form 16 - Fusion - WeRIndia

When to use Multiple Form 16

When to use Multiple Form 16

Many of you might be aware of Form 16. It is essential to file income tax returns for the financial year. So, you must obtain it from your employer before the end of the financial year.

Form 16 reveals the amount of tax deducted at source. So, employers provide TDS certificate to their employees on Form 16. They will not be issued to the other employees for whom they are not deducting tax at source. In other words, if the income of the employee is under the limits of specified tax, they are not issued Form 16.

Multiple Form 16 means having more than one Form 16 from the employers. Normally an employee can have Multiple Form 16 in two conditions. The first condition is that if the employee switches from one job to another job in a financial year and another condition is that working with more than one employer simultaneously.

In these days, many people are switching from one job to another due to several reasons. In such cases, the employee needs to collect the Form 16 from the old employer as well as from the new employer. Under such circumstances, the employee has to fill multiple Form 16s.

You have to fill ITR 2 for multiple Form 16 which allows to add more employers. If you switched from the one job to another, you have to furnish the current employer details in the employer column and fill the details accordingly.

If you are working with more than one employer simultaneously, you have to provide the details of the employer from whom you are getting more salary and fill his details in the employer column. Then, you have to provide the details of second employer as well after clicking on “Add Salaries”. Thus, fill all the information in various sections from different Form 16s.

As your PAN number is with the income tax department and all the transactions like TDS are revealed. So, you must reveal your exact income and file the returns. Otherwise, you will have to bear the penalties from the Income Tax Department.

Image Reference: Financial Express

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