Taxation of Salary Income from 2 (Two) Employers in one financial year

.form 16 not received previous employer

Form 16 is an Income Tax Form or Certificate for tax deduction issued by an employer to its employees when he deducts tax from the employee’s salary. (Click Here to read in detail)

Sometimes, a situation may arise where you as an employee had worked with more than one employer in a particular Financial Year. In that case, you need to be aware and educated about the fact that, how to deal with salary income from 2 employers in one Financial Year?

Ideally, at the end of the financial year you will receive Form 16 from both the employers for the respective time period you worked with them. Doubts or confusion may arise when you are filing your Income Tax Return. We have tried to simplify the process by categorising it in various scenarios (cases). Let’s find out how you can deal with this situation in an easy manner:

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Case 1: When you have received Form 16 from both the employer – Ideal Situation

This is the most hassle-free case, when you have received Form 16 from both the employer. You just need to add Income from 2 employers in your Income Tax Return under the head ‘Income from salary’ and the details provided in both the Form 16s as it is. Firstly, add details of employer with whom you have worked in the starting period of the year and then add details of the later one.

 If the salary details from your previous employer are already added by your later employer in Part – B of his Form 16, you just need to verify that the details are correct and use the Form 16 of the later employer to file your return of income.

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Case 2: When you have received Form 16 from any one of them – Practical Aspect

If you have received Form 16 from your current employer only

If you have received Form 16 from your later employer only, and he has considered your previous employment details in Form 16 on the basis of information provided by you, you can file your return on the basis of this Form 16 only. But if you didn’t provide him your previous salary details and hence the same is not considered in your Form 16, you need to add all the details in your return separately on your own.

If you have received Form 16 from your previous employer only

This is a very rare situation but if you have received Form 16 from your previous employer only, you can ask your later employer to provide Form 16 and if they didn’t, you have to file your income tax return by adding all the details on your own.

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Case 3: When none of the employer had provided you Form 16 – Practical Aspect

If none of your employer has provided you with Form 16, you need to enter all the details in your Income tax return on your own. In this case, you have to calculate all deductions like HRA etc.

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Note: Benefit of slab rate and Deduction u/s 80C, 80D ,etc.  should be considered only once and not per Form 16 basis. 

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Disclaimer: The above mentioned cases are illustrative and not exhaustive. This article is only for discussing general issues and hereby we do not express any opinion or give any consultation in what so ever manner understood. The cases may differ from individual to individual. We recommend you to take expert advice depending upon your particular case.

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