New Delhi: Submitting earnings tax returns (ITR) is a yearly requirement for all working professionals. The salaried class is required to finish the ITR type 1, which can be completed simply utilising the Kind 16 provided by their employers as soon as the fiscal yr has ended.
Kind 16 is required for salaried people to file their ITR. It comprises details about the Tax Deducted at Supply (TDS) that the employer deducted and remitted on behalf of the staff throughout the fiscal yr. Yearly, your employer is required to give you Kind 16 by the fifteenth of June. Learn Extra: ITR Submitting for monetary yr 2021-22: This is what occurs in the event you do not file earnings tax returns on July 30
However as a result of professionals are more and more altering professions to advance their careers and speed up the rise of their earnings, they ceaselessly find yourself with many Kind 16s from numerous employers for a given fiscal yr. And there’s uncertainty about the way to file their tax return as a result of course of being new to them. Learn Extra: Ola to merge with Uber? Founder Bhavish Aggarwal says ‘Absolute Garbage’
In case you are one of many taxpayers who has two Kind 16s for this fiscal yr, here’s a fast and straightforward approach that will help you file your ITR.
Don’t panic
At the beginning, do not stress your self out. Whereas it does seem difficult, having multiple Kind 16 doesn’t imply you may’t file your ITR your self. There are 3 ways to file ITR with multiple Kind 16. Let’s start with the best and the simplest ones.
Tips on how to file ITR in case you have two Kind 16
a) Use Tax Submitting Portals: ITR submitting is made attainable by a number of tax-filing web sites at a low price. Some even present this service for free of charge. To generate a login ID for your self, you may go to such portals and register. If there are PDF variations of each Kind 16s, you will need to add them each subsequent. Should you solely have paper copies of your Kind 16s, you may manually fill out each’s data and press the submit button. The important computations, equivalent to summing up your incomes, exemptions, and deductions, can be dealt with mechanically by the online portals. You will not need to put a lot effort into it, and will probably be completed shortly.
b) Get the consolidated Kind 16 out of your present employer: Consolidating the Kind 16 out of your former job with the one out of your current firm is one other fast and straightforward choice to deal with ITR submitting in case you have two employers. By doing this, you’ll solely want one Kind 16 and may submit your ITR similar to every other worker who has a single Kind 16.
How do you do it? Fill out Kind 12B and provides it to the brand new employer in the event you change jobs within the midst of the fiscal yr. The individual’s prior yearly wage is revealed on this way. Though offering Kind 12B, an earnings tax type, is just not required, it’s suggested that you just achieve this with a purpose to present your new employer with a correctly filled-out Kind 12B. This makes positive that your new employer takes under consideration your prior earnings throughout the yr and, in consequence, points a mixed Kind 16 following the top of the fiscal yr. This calmly allays your issues and streamlines the ITR submitting process.
Make it possible for all the data on Kind 12B, together with the PAN and TAN of the previous employer, tax withheld at supply by the prior employer, PF deductions, the breakdown of the prior wage, {and professional} tax, are correct. Remember the fact that it’s your obligation to finish Kind 12B; it isn’t the employer’s duty.
c) Do it manually: Though it could appear essentially the most tough, if you’re a reliable mathematician and have a fundamental understanding of taxes, you may full this activity independently. Begin by gathering each Kind 16s. Study them rigorously and make notice of the specifics, equivalent to the entire earnings, the investments made to scale back taxes, the varied deductions, TDS, and HRA, amongst others. Fill out the ITR 1 type fully and add the required data. Be sure that to solely enter specific data, like commonplace deductions, as soon as whereas doing it.
You’ll be able to decide your tax obligation upon getting decided your complete taxable earnings, which should additionally have in mind dividend earnings, curiosity from financial institution FDs and accounts, and different sources of earnings along with your wage (A). Subtract the taxes you already paid as TDS as proven in Kind 16’s Half-A. (B). The tax that you will need to pay is the remaining sum (A-B). Cross-check this quantity with the knowledge on Kind 26AS and the Annual Data Assertion, or AIS, earlier than paying the surplus tax. Confirm your tax returns, then pay the taxes in the event that they match. If there’s a discrepancy, you will need to change the knowledge that was crammed in.