Understanding Form 16 Submission and Income Consolidation for Tax Filing with Multiple Employers

Hi,

I have a query regarding multiple Form 16s. Suppose I worked in company A up to August and in company B from August onwards. In this case, I will be submitting IT proofs only to company B. However, I want to know what will happen to the income from company A. Do I need to declare or submit tax proofs to company A as well? How can I consolidate the incomes from both companies and file a single return?

In a very simple matter, you have to consider both Form-16 for your IT return.

The Form 16 you have from Company-A is proof of your income from your last employment within a specific period under the financial year (August - 5th Month of India Financial Year April to March). Similarly, you have Form-16 from Company-B as proof of your income from your second employment within the same financial year.

Therefore, both Form-16s are statements of income you have earned from your employment and provide you with the total earnings you have within the financial year, which need to be used for calculation and generation of your Income Tax Return.

Example:

You have worked with Company A for 5 months (April to August)

Income Per month = Rs. 10

Total income from Company A = 5 x 10 = Rs. 50

And you have a total income from Company B = Rs. 85 for the rest of the period under the financial year.

Therefore, your total income for the financial year would be:

= Rs. 50 (Company A) + Rs. 85 (Company B)

= Rs. 135 (you have to consider for IT return)

I hope everything is clear to you now.

Hi,

In addition to what AK Arora said, please submit your tax calculation sheet or Form 16 from Company A to Company B. Otherwise, Company B will not consider your income from the previous employer and will calculate tax for the income from Company B, which will result in deducting less tax than actual.

If you submit your tax calculation sheet or Form 16 from Company A to Company B, they will consider income from A's Form 16 as income from the previous employer and recalculate the tax. This way, you will not end up overpaying taxes when you submit the returns. Company B's Form 16 will have complete income information from both Company A and Company B. However, please note that you will have to submit both Form 16s to the IT department while filing the returns.

My question is if someone works for two organizations - one full-time and the other as a freelancer/part-time - and receives income from both, along with Form 16 from both organizations, how should they handle this situation during tax filing? Is this valid, and how can they properly declare this income?