Every salaried person must obtain Form 16 from the employer before the end of a financial year. Form16 contains the details of salary earned by the employee and tax deducted from it by the employer. In other words, it can be explained as the details of tax deducted by the employer on behalf of an employee.
Form 16 is Certificate of deduction of tax at source under section 203 of the Income Tax Act, 1961. Employers provide TDS certificate to the employees on Form 16. If the employer has not deducted any tax at source, then it is not compulsory to issue the Form 16.
Who Is Eligible to File ITR-1/Sahaj?
- Individual with salaried or pension income
- Income from House Property
- Income from other sources including FD’s interest rate and excluding speculation income
- Where income of spouse or minor is clubbed with assesse.
Different Ways to File IT Return
- Paper return at local IT office
- Electronic return using digital signature
- Electronic return along with submission of verification data in Form ITR-V
- Bar coded return
The last date to submit Income Tax Return for a salaried employee is 31st July 2012. Get the Form 16 from all employers before calculating the tax. Once you collect all the relevant details to file the return start working in a piece of paper as following:
- Calculate Income from Salary/Pension: Total of amount in all the Form 16.
- Calculate Income from other sources
- Calculate amount for 80C, 80D, 80CCC etc: Include the item here even if not included in any of the issued Form 16.
Under what condition a person holds multiple Form-16?
There may be cases when a person holds multiple Form-16. Such conditions may arise in following two situations, when:
* A person switches a job in the same financial year.
* A person is working with multiple employers simultaneously.
Multiple Form-16 and IT return
It’s quite simple to file the IT return when someone holds multiple Form-16. One should keep following points in mind as per the situation:
Multiple Form-16 due to Job Switch
The employee should either declare the details of past Forms-16 to the new employer to calculate the tax liability considering the previous job details or if the employee wants secrecy, then he can mention the consolidated income of all the Form-16 at the time of filing IT return. In any case Form 16 from all the employers would be required.
Multiple Form-16 due to Multiple Job at a time
In this case, an employee can simply file the consolidated income at the time of filing IT return to take into account all the jobs he is involved in.
Finally, it is necessary to note here that a consolidated Form 16 is irrelevant because of different TAN numbers of the employers. So employee must hold Form-16 separately from all the employers. While filling the return employee has to aggregate total salary (i.e. of both the company & the result will be your tax paid or refundable as per the condition while setting off the TDS).
If the employee has forgotten to mention the significant detail to its employer under Form-16 details, then he/she can include it at the time of filing return and provide the relevant documents of proof to the current employer for records. One must check the Form-16 carefully to eliminate the chances of mistakes in PAN no, Tan No and address details, and such.
About the author:
Amit Sethi is an MBA (Fin) graduate and a Financial Consultant. He has spent 8 years in Equity research and Stock broking sector. He can be reached at firstname.lastname@example.org
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