Need to File ITR with more than 2 Form 16? Know the Process

The Income Tax Return (ITR) is a form that must be submitted to the Income Tax Department of India. It comprises information on a person’s earnings and the taxes that must be paid on those earnings throughout the year.

Those taxpayers who are crossing the threshold limit prescribed by the government for filing income tax, are required to file Income Tax Return (ITR).

Those who are Filing the ITRs need to check which ITR form is applicable for Filing the Income Tax Returns as per the provisions of the Income Tax Act.

For employees to file their income tax returns (ITR), Form 16 is the most crucial document. Salary earners get Form 16, also known as a salary certificate, from their employers each year as proof that income tax has been deducted at source (TDS) and forwarded to the collecting authorities.

But what if an employee had changed jobs once or more over the previous financial year, and each time they did so, their employers issued a different Form 16 for the various time periods during which they employed them. In regards to determining total taxable income, total tax exemptions on house rent, LTA, etc., salaried taxpayers with several Form 16s sometimes experience confusion.

If you have more than one Form 16, here is a step-by-step instruction manual on how to file an ITR:

1. Start by adding up the total salary that was earned for the financial year from all of the employers. The values indicated in each head of all Form 16s can be added to arrive at this. To find out the entire amount earned under each heading for the financial year 2021–2022 from all employers, the person must add up the totals for each head.

2. Determine how much of your salary income is exempt from tax by using this calculator. You may only claim tax exemption from your salary income for things like house rent allowance (HRA), leave travel allowance (LTA), and other expenses.

3. To determine the total amount of exemption that may be claimed, add the HRA and LTA values from both Form 16s. Cross-checking the amount you are claiming with the amount you are entitled to claim is crucial. Even if a person hasn’t given their employer documentation of their rent, they can still claim an HRA tax exemption. To determine the amount of tax exemption that one is qualified to claim, one might use online HRA calculators.

4. The standard deduction from salary income, which is Rs 50,000, is also available to those who are salaried. There is a chance that the standard deduction of Rs. 50,000 will appear on both Form 16s. The maximum deduction from total taxable pay that a person may claim is Rs 50,000, not the Rs 1 lakh (Rs 50,000 + Rs 50,000) that is stated in Part-B of both Form 16s. As a result, after estimating gross salary using the steps above, an individual is qualified to make a single standard deduction claim of Rs. 50,000.

5. The next step would be to claim deductions allowed under sections 80C, 80D etc. from total taxable income. Salary income, interest on bank accounts, fixed deposits (FDs), dividends from equity shares, mutual fund distributions, etc. are all included in total taxable income. Remember that all the employers may have taken the same deductions in this case. But as per income tax laws, these deductions can only be availed once.

6. A person will need to determine their income tax liability after calculating their total taxable income. Taxes that have previously been withheld and deposited against your PAN should be deducted. In Part-A of Form 16, you may view the TDS amount.