If you in the last financial year have changed jobs then you should be receiving Form 16 from all of your employers in the previous year i.e 2016-17 by today. The earlier deadline of May 31st for employers to furnish Form 16 has been extended to June 15, 2017.
What is Form 16? How it is used in filing ITR?
Form 16 is a summary that details the total salary together with other allowances paid to the employee for a given FY. The document also includes the total taxes deducted at source by the employer on the employee's salary and paid to the government on his or her behalf.
As the certificate handed over the employer consist primarily all the information required to file ITR, it is one of the crucial documents. While filing the ITR, following information is to be provided that includes taxable salary, section 80C deductions gross as well as deductible amount, break up of 80C , TDS, tax payable or refund as the case may be, TDS deductions by the employer, PAN and TAN of employer, Name and address of employer, Your name and address and PAN.
In case when multiple Form 16 is available from all employers
You need to first take into account the total salary from all the employers. Thereafter provide for deductions allowed in respect of different exemptions such as travel allowance, HRA etc. The exemptions not provided by the employer due to non-submission of relevant proofs and supporting document can be claimed by the salaried individual while filing ITR. Claim for other deductions available under section 80C, 80D and 80G.
Later, compute your total tax liability for the year and deduct the TDS deductions made by all the employers you had worked with for the year.
In case when Form 16 is provided only by the current employer
The same procedure can be followed to compute the tax liability with the help of pay slips issued by the other employer for knowing the tax deductions made. TDS details can also be cross checked with the help of Form 26AS. If any tax liability arises, the employee should pay off.
To avoid any likely errors furnish Form 12B to new employer upon joining
In order to avoid any unnecessary discrepancies on the part of employer while providing form 16 for a particular FY, it is suggested that employees upon joining a new company furnish Form 12B that includes salary break-up together with allowances and other perks, deductions allowed by the earlier employer and TDS amount deducted.
So, after computing your tax liability for the FY taking into account Form 16 from all the employers, you can file your tax return latest by July 31, 2017.