ITR Filing for financial year 2021-22: Filing ITR with multiple Form 16? Here’s how to do it

New Delhi: Filing income tax returns (ITR) is a yearly requirement for all working professionals. The salaried class is needed to complete the ITR form 1, which may be done easily utilising the Form 16 supplied by their employers once the fiscal year has ended.

Form 16 is required for salaried individuals to file their ITR. It contains information about the Tax Deducted at Source (TDS) that the employer deducted and remitted on behalf of the employees during the fiscal year. Every year, your employer is required to provide you with Form 16 by the 15th of June. Read More: ITR Filing for financial year 2021-22: Here's what happens if you don't file income tax returns on July 30

But because professionals are increasingly changing professions to advance their careers and accelerate the rise of their income, they frequently end up with many Form 16s from various employers for a given fiscal year. And there is uncertainty about how to file their tax return due to the process being new to them. Read More: Ola to merge with Uber? Founder Bhavish Aggarwal says 'Absolute Rubbish'

If you are one of the taxpayers who has two Form 16s for this fiscal year, here is a quick and easy technique to help you file your ITR.

Do not panic

First and foremost, don't stress yourself out. While it does appear complicated, having more than one Form 16 does not mean you can't file your ITR yourself. There are three ways to file ITR with more than one Form 16. Let’s begin with the simplest and the easiest ones.

How to file ITR if you have two Form 16

a) Use Tax Filing Portals: ITR filing is made possible by several tax-filing websites at a low cost. Some even provide this service at no cost. To generate a login ID for yourself, you can go to such portals and register. If there are PDF versions of both Form 16s, you must upload them both next. If you only have paper copies of your Form 16s, you can manually fill out each one's information and press the submit button. The essential computations, such as summing up your incomes, exemptions, and deductions, will be handled automatically by the web portals. You won't have to put much effort into it, and it will be finished quickly.

b) Get the consolidated Form 16 from your current employer: Consolidating the Form 16 from your former job with the one from your present company is another quick and easy option to handle ITR filing if you have two employers. By doing this, you will only need one Form 16 and can submit your ITR just like any other employee who has a single Form 16.

How do you do it? Fill out Form 12B and give it to the new employer if you change jobs in the midst of the fiscal year. The person's prior yearly salary is revealed on this form. Although providing Form 12B, an income tax form, is not required, it is advised that you do so in order to provide your new employer with a properly filled-out Form 12B. This makes sure that your new employer takes into account your prior earnings during the year and, as a result, issues a combined Form 16 following the end of the fiscal year. This calmly allays your concerns and streamlines the ITR filing procedure.

Make sure that all of the information on Form 12B, including the PAN and TAN of the former employer, tax withheld at source by the prior employer, PF deductions, the breakdown of the prior salary, and professional tax, are accurate. Keep in mind that it is your obligation to complete Form 12B; it is not the employer's responsibility.

c) Do it manually: Although it may seem the most difficult, if you are a competent mathematician and have a basic understanding of taxes, you can complete this task independently. Start by gathering both Form 16s. Examine them carefully and make note of the specifics, such as the total income, the investments made to reduce taxes, the various deductions, TDS, and HRA, among others. Fill out the ITR 1 form completely and add the necessary information. Make sure to only enter particular information, like standard deductions, once while doing it.

You can determine your tax obligation once you have determined your total taxable income, which must also take into account dividend income, interest from bank FDs and accounts, and other sources of income in addition to your wage (A). Subtract the taxes you already paid as TDS as shown in Form 16's Part-A. (B). The tax that you must pay is the remaining sum (A-B). Cross-check this amount with the information on Form 26AS and the Annual Information Statement, or AIS, before paying the excess tax. Verify your tax returns, then pay the taxes if they match. If there is a discrepancy, you must change the information that was filled in.