Switching Jobs in the middle of the Financial Year? Here’s How to Deal with Multiple Form 16sadmin
These days’ professionals often tend to switch their jobs as if they get better paymasters.
Form 16s is one of the most critical documents for filing income tax return at the end of a financial year. This form contains a summary of taxes deducted by your employer and deposited against your PAN with the government. This form also includes a summary of the total amount that is actually paid by the employer to the employee. Managed payroll services are an important part and parcel of handling form 16s if an employee has changed jobs in the middle of a financial year.
Let us see some of the situations.
If Form 16s is received from all the employers
These days’ payroll tax compliance is a very must work for both employers as well as employees. In case an employee possesses more than a single form16, then tax computation should be made after considering every Form 16 document. Also, only the value of exempt allowances and perquisites such as HRA, Travel allowance, etc. should be deducted. You may claim the deductions allowed under 80C, 80D, and 80G. There may be a possibility that the same deduction is allowed by all employers in Form 16. It should be kept in mind that the benefit of deductions can be taken only once against your total income. You can calculate the tax liability and deduct the TDS deducted by all the employers mentioned in Form 16s issued by them. You can also cross-check the amount of TDS deducted with Form 26AS. Managed payroll services makes it easier to handle these complicated situations.
Received only one Form 16 and not from the previous employer
If an employee has only one Form 16, he can still file his return. He can get the details of the breakup of the salary and the TDS deducted from the pay slips received from the employer. He should aggregate his total income and should deduct the exempt allowances and perquisites. Claim the deductions under section 80C, 80D, 80G, etc. calculate the total tax liability and deduct the TDS. However, if there is still any tax due, he should pay the same. The amount of TDS deducted can be cross-checked with Form 26AS. HR payroll and compliance are very important factors for both an employee and the employer.
Not Received Form 16 from any of the employers
Form 16s is a TDS certificate showing the taxable income and the TDS. You can still calculate the same without Form 16.
- From the pay slips, the taxable income can be figured out
- The tax credit 26-AS will help you to find the exact tax deducted
- Don’t lose out on HRA if you are eligible
- Claim your deductions
- Income from other sources
- Pay additional taxes if necessary
- Finally, file your income tax return
File your income tax return by outsourcing your payroll to the best payroll vendor. Managed payroll services play a great role in simplifying the processes. As you receive Form 16 from one or more employers or have arrived at your tax liability by following any of the above processes, you may get ready to file your taxes latest by August 31. Also, as you join a new employer, don’t forget to submit Form12B to the new employer with details such as break up of salary, allowances, deductions, TDS on salary deducted by the previous employer, etc.