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Tax filing with 2 form 16s

Anjali (IT) (71 Points)

21 July 2012

Hi Everyone,

I changed my job in October 2011 and had provided the previous salary/tax details to my current employer.

Now, the Form 16 from my current employer includes the income/TDS totals from my previous employer. I am confused whether I should file my tax with the Form 16 of my current employer only or whether I should declare both the Form 16s and deduct the previous salary/tax from the current Form 16.

In both the cases the numbers remain the same and I don't have any tax liability. I need help to understand which is the right way to file the tax.

Regards,

Anirban

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4 Replies

Roshan Thomas (C.E.O ) (356 Points)
Replied 21 July 2012

You should show both Form 16. Your current employer has to show TDS deducted by your previous employer in the Form 16 otherwise the computation will show you as having tax liability. Your employer calculates tax on your total income therefore total tax deducted is also shown.

Since as per Income Tax records tax has been deducted by 2 separate employers - you will have to mention both Form 16 in your return

Anjali (IT) (71 Points)
Replied 21 July 2012

Dear Roshan,

Thanks for the response. However, my current employer's Form 16 does show TDS deducted by your previous employer, as I had declared my previous income in the Form 12B when I joined my new employer.

I am getting contradictory responses from various sources . Few sources including taxspanner tell me to show only the last Form-16 as it includes the income/TDS of the previous employer, whereas few others are telling me to show both Form-16 as my Form 26AS contain entries of my previous employer.

I'm quite confused, Please help

Regards,
Anirban

Devendra Singh (Chartered Accountant) (487 Points)
Replied 22 July 2012

See Dear Anirban,

dont get confused...you have received income only once, hence show it only once...Form 16 is just only for calculating tax liability and a certificate for TDS deducted by the person making the payment...the correct method was that your current employer should have deducted TDS from your income after considering income & tax deducted by previous employer and without mentioning it in Form 16 issued by current employer...

But since it has been issued no need to worry....file your return with both form 16 mentioning income & tax from both employers seperately under different TAN, as it is showing in your Form 26AS...

While filing your return, under the first column mention the income & TDS from the previous employer under his TAN (as given in Form 16 of previous employer) and then in second column mention the income from the current employer and the amount of TDS deducted by the current employer under his TAN (and not the income & TDS shown in Form 16 given by current employer).

In this way you can get the benefit of your full tax credit and you dont even need to hide your both Form 16. if you still have any doubts then please feel free to ask.

Roshan Thomas (C.E.O ) (356 Points)
Replied 22 July 2012

I can understand your confusion. Eventhough TDS by previous employer may be stated in the current employers form 16 - You will have to mention both Form 16 separately.

To bring finality to this issue I suggest that you view your Form 26AS -Tax Credit Statement. There it will be clearly mentioned who all have deducted tax against your salary (and any other income). In all probability both the employers name and particulars of deduction will be shown and you should also state the same in your return.

In this context you should also note that - the final tax credit that you received will be as per Form 26AS. If there is any mismatch between your return and 26AS - 26AS will be adopted. Therefore you should offer salary income for assessment according to the particulars in Form 26AS

You can view form 26AS after login in into IT Dept Website

https://incometaxindiaefiling.gov.in/portal/index.do