The deadline to file Income Tax returns (ITR) for the ongoing assessment year 2022-23 is July 31.
However, people who changed jobs in this period may have received Form 16 from both their employers, current and previous. It is, therefore, natural to be confused about how to proceed next.
People with two Form 16s should know they, too, can file their returns and claim all their benefits. They only have to follow the steps mentioned below:
(1.) Collect Form 16 from your current and previous company.
(2.) Next, add the income earned from both the organisations. Many websites allow taxpayers to enter their income and collate other information automatically.
(3.) Now, from your total salary for the entire financial year, subtract leave travel allowance (LTA), house rent allowance (HRA), standard deduction, and deductions under Sections 80C, 80G, 80D etc.
Please also note that these deductions can be claimed only once. Hence, for example, if both the companies have given you a standard deduction of ₹50,000 each, you cannot total it to ₹1 lakh.
(4.) After making all of the above calculations, find out your tax liability by adding the tax deducted at source (TDS) by each employer. If any liability is found, pay it first, and then file ITR.
If only current employer has given Form 16: In such a case, collect your salary slips from the previous organisation, and calculate your total gross salary by adding income from your current company’s Form 16 and the salary slips from the previous firm. The remaining process remains the same as above.
If no Form 16 issued: Use your pay slips for salary breakup and tax deductions. From your total income, subtract the exemptions and claim them. Then, follow the same procedure as above.