How to File ITR When You Have Salary from Multiple Employers in India
- PRITI SIRDESHMUKH
- 2 hours ago
- 10 min read
When salary income is received from more than one employer in a financial year, the income tax return (ITR) process requires extra attention. Each employer deducts TDS separately, which can lead to double taxation or underpayment if not reported correctly. To ensure accurate reporting, it’s essential to consolidate all salary details, check Form 26AS for tax credits, and file the correct ITR form under the Income Tax Act, 1961. With the help of platforms like TaxBuddy, taxpayers can now file ITR easily by uploading multiple Form 16s and automatically merging salary and TDS information.
Table of Contents
Understanding Multiple Salary Income under the Income Tax Act, 1961
Documents Required to File ITR with Salary from Multiple Employers
Choosing the Right ITR Form for Multiple Employers (ITR-1 vs ITR-2)
Avoiding Common Mistakes While Filing ITR with Multiple Form 16s
Role of TaxBuddy in Simplifying ITR Filing for Multiple Employers
Understanding Multiple Salary Income under the Income Tax Act, 1961
When an individual changes jobs within a financial year or works with multiple employers, the income earned from each employer must be reported together under the head “Income from Salary.” As per the Income Tax Act, 1961, each employer deducts tax at source (TDS) independently, based on the salary paid and the employee’s declarations. This often results in higher or lower TDS than required because each employer calculates tax without accounting for the other income. Therefore, taxpayers must combine all salaries to determine their total taxable income, ensuring correct tax computation and avoiding double taxation or tax notices from the department.
Documents Required to File ITR with Salary from Multiple Employers
Accurate filing begins with collecting all necessary documents from every employer worked with during the year. These include Form 16 from each employer, which details salary components and the tax deducted. Salary slips can be used to verify income figures. Form 26AS and the Annual Information Statement (AIS) must also be downloaded from the income tax portal to cross-check TDS entries against employer deductions. Additionally, investment proofs, rent receipts, and medical insurance payment details should be kept ready for claiming eligible deductions under Sections 80C and 80D. These documents together help ensure the income and tax details reported are correct and complete.
How to Combine Salary and TDS Details Accurately
To file correctly, the total salary received from all employers must be combined to compute the gross income for the financial year. This includes basic salary, allowances, perquisites, and bonuses from each job. TDS deducted by every employer should also be totaled separately. While filing ITR, these combined figures are entered under “Income from Salary.” If one employer has deducted excess tax and another has deducted less, the final computation will adjust the difference. Online platforms like TaxBuddy make this process easier by allowing users to upload multiple Form 16s, automatically consolidating income and TDS details before submission.
Checking Form 26AS and AIS for Tax Credit Accuracy
Form 26AS and AIS are vital to confirm whether all TDS deductions by employers are reflected correctly in the government’s records. If any employer fails to deposit TDS on time, it may not appear in Form 26AS, causing mismatched credits. Taxpayers should compare TDS figures in Form 16 with those shown in Form 26AS and AIS. Any discrepancies must be immediately rectified by contacting the employer. Ensuring accurate TDS entries prevents delays in refund processing and reduces the risk of receiving a notice for underreporting income.
Choosing the Right ITR Form for Multiple Employers (ITR-1 vs ITR-2)
Selecting the correct ITR form is crucial to prevent rejection or processing delays. ITR-1 (Sahaj) is suitable for individuals with total income up to ₹50 lakh from salary, one house property, and other sources like interest income. However, when income comes from multiple employers, or if there are capital gains or foreign income, ITR-2 should be used. It allows detailed reporting of salary income from different sources, along with TDS and deductions. Filing through the right form ensures compliance with income tax regulations and smoother processing of returns.
Claiming Deductions and Exemptions in Case of Job Switches
When switching jobs, certain exemptions and deductions—such as HRA, LTA, 80C investments, and 80D medical premiums—must be claimed carefully. These cannot be claimed multiple times for the same financial year. The total exemption or deduction should be proportionately distributed across all salary sources. For instance, if rent was paid throughout the year, the HRA claim must reflect the total rent and salary period across both employers. Keeping track of all investments and expenses helps optimize tax savings while maintaining compliance.
Avoiding Common Mistakes While Filing ITR with Multiple Form 16s
Many taxpayers make the mistake of entering income from only one Form 16 or duplicating income entries from both employers. Another common error is not verifying TDS details in Form 26AS, which can lead to tax mismatches. Forgetting to update deductions or declaring incorrect PAN details are also frequent issues. The safest approach is to review all Form 16s, confirm entries in Form 26AS, and calculate total taxable income before filing. Using professional assistance or automated filing platforms like TaxBuddy helps prevent such mistakes and ensures a smooth filing experience.
Using Form 12B to Prevent Excess TDS Deductions
Form 12B is a declaration that helps a new employer calculate TDS accurately when an employee changes jobs mid-year. By submitting Form 12B, the employee provides the new employer with details of income and TDS from the previous job. This allows the employer to consider the previous salary while determining TDS for the remaining months. Not submitting Form 12B often leads to excess tax deductions or inconsistencies in Form 26AS. Therefore, it’s essential to share complete income details with the new employer to maintain accurate tax records.
Adjusting for Refunds or Additional Tax Payable
After consolidating salary and TDS details, the next step is determining the final tax liability. If the total TDS exceeds the actual tax payable on combined income, the difference can be claimed as a refund. Conversely, if TDS is lower, the balance must be paid before submitting the ITR. The Income Tax Department adjusts these amounts automatically while processing the return. Regularly checking refund status or tax payable updates ensures timely completion of the filing process and avoids future discrepancies.
Role of TaxBuddy in Simplifying ITR Filing for Multiple Employers
Filing ITR with multiple Form 16s can be complicated, but TaxBuddy simplifies this process with its AI-driven platform. Users can upload all Form 16s, and the system automatically consolidates salary income, verifies TDS credits from Form 26AS, and recommends the correct ITR form. It also checks for common errors like unclaimed deductions or missed TDS entries. TaxBuddy’s expert-assisted and self-filing plans offer flexibility for both simple and complex cases, making it one of the most efficient platforms for filing ITR with multiple employers.
Filing the Return Before the Due Date
The due date for filing ITR for salaried taxpayers is generally July 31 following the end of the financial year, though the Central Board of Direct Taxes (CBDT) may extend it. Filing before the deadline is important to avoid late fees under Section 234F and interest under Sections 234A and 234B. Timely filing also ensures faster processing of refunds. Taxpayers should keep all documents ready and verify all income and TDS details well before the due date to prevent last-minute errors or portal delays.
Conclusion
Filing an income tax return when salary is received from multiple employers requires careful consolidation of income and TDS details. Missing or duplicating information can result in incorrect tax liability or departmental notices. Using a digital filing platform like TaxBuddy ensures all Form 16s are merged accurately, deductions are verified, and the return is filed in compliance with the Income Tax Act. For anyone looking for assistance in tax filing, it is highly recommended to download the TaxBuddy mobile app for a simplified, secure, and hassle-free experience.
FAQs
Q1. Does TaxBuddy offer both self-filing and expert-assisted plans for ITR filing, or only expert-assisted options?
TaxBuddy offers both self-filing and expert-assisted plans to meet the needs of different taxpayers. The self-filing plan is ideal for salaried individuals with straightforward returns, where users can simply upload their Form 16 and the platform auto-fills the return using AI. It checks for common errors, validates TDS, and ensures compliance with the Income Tax Act. The expert-assisted plan, on the other hand, is designed for individuals with complex tax situations—such as multiple employers, capital gains, F&O trading, or NRI income—where professional guidance is provided by tax experts. This flexibility allows taxpayers to choose the most suitable option for their situation.
Q2. Which is the best site to file ITR?
The official e-filing portal of the Income Tax Department (incometax.gov.in) is the statutory platform for filing returns. However, for a more user-friendly experience, many prefer reliable platforms like TaxBuddy. It combines automation and expert support to make the filing process faster and simpler. TaxBuddy’s system automatically reads Form 16, verifies income data, identifies applicable deductions, and provides real-time accuracy checks. It also helps in handling complex cases like salary from multiple employers, ensuring there are no errors or missed entries that could lead to tax notices.
Q3. Where to file an income tax return?
An income tax return can be filed through two primary channels—either via the official Income Tax Department’s e-filing website or through secure and authorized online tax platforms. TaxBuddy is one such trusted platform that allows users to file ITR with ease by uploading documents like Form 16, salary slips, and investment proofs. Its automated system cross-verifies TDS entries with Form 26AS and ensures correct tax computation before submission. Filing online not only saves time but also minimizes the risk of calculation errors and data mismatches.
Q4. What if salary from one employer is missed during filing?
If salary income from one of the employers is accidentally omitted while filing the return, it’s essential to file a revised return immediately. Omitting any income can lead to underreporting, which may attract penalties or scrutiny notices from the tax department. The revised return should include the previously missed salary and corresponding TDS details to ensure compliance. Platforms like TaxBuddy simplify this process by allowing users to edit or revise returns easily, ensuring the updated version reflects accurate income from all employers.
Q5. Can HRA exemption be claimed for both employers?
No, the House Rent Allowance (HRA) exemption can only be claimed once for the financial year, even if a taxpayer worked with multiple employers. The exemption must be calculated for the total rent paid and total salary earned across all jobs. If the employee received HRA from both employers during different periods, the exemption should be apportioned accordingly. Proper documentation such as rent receipts and lease agreements should be maintained for verification. Filing platforms like TaxBuddy help compute HRA eligibility accurately while ensuring the exemption is claimed only once.
Q6. What if one employer’s TDS is not reflected in Form 26AS?
If the TDS deducted by an employer is not reflected in Form 26AS, it means the employer might not have deposited the deducted tax or filed the TDS return correctly. In such cases, the taxpayer should immediately contact the employer or HR department to correct the issue. Once the employer updates the TDS filing, it will appear in Form 26AS after a few days. Until then, the taxpayer cannot claim that TDS credit. Platforms like TaxBuddy automatically verify TDS entries in Form 26AS to identify such discrepancies before submission, reducing the chances of mismatched tax credits.
Q7. Which ITR form should be used if income exceeds ₹50 lakh?
When total income exceeds ₹50 lakh or if a taxpayer has additional sources such as capital gains, rental income, or income from more than one employer, ITR-2 should be used. ITR-1 (Sahaj) is limited to individuals with income up to ₹50 lakh from salary, one house property, and other sources like interest. ITR-2 provides detailed fields for multiple income categories, deductions, and tax computations. Filing the correct form ensures smooth processing and reduces the risk of return rejection. TaxBuddy automatically suggests the right ITR form based on income details uploaded by the user.
Q8. How does Form 12B help while changing jobs?
Form 12B is a vital declaration form that helps the new employer calculate accurate TDS when an employee changes jobs mid-year. It contains details of income earned and TDS deducted by the previous employer. Submitting Form 12B ensures that the new employer considers earlier salary and tax deductions, preventing double taxation or excess TDS. Without this form, each employer may deduct TDS separately, leading to a higher overall tax deduction. Using TaxBuddy’s expert guidance, employees can understand how to use Form 12B effectively during job changes to maintain accurate tax compliance.
Q9. Can multiple Form 16s be uploaded while filing ITR online?
Yes, taxpayers who have worked for more than one employer can upload multiple Form 16s while filing their income tax return. Online platforms like TaxBuddy are designed to handle such cases efficiently. They automatically extract income and TDS data from each Form 16, consolidate the information, and calculate total taxable income. This reduces the manual effort and eliminates the risk of duplication or omission. The system also cross-verifies TDS credits in Form 26AS, ensuring all entries match before filing.
Q10. What are the penalties for not reporting all salary income?
Failure to report all salary income may result in penalties and interest under multiple sections of the Income Tax Act. Under Section 270A, a penalty of up to 50% of the tax on underreported income can be imposed. In severe cases of deliberate misreporting, the penalty can go up to 200%. Additionally, interest under Sections 234A, 234B, and 234C applies for delayed payments and filings. To avoid such consequences, taxpayers should ensure that all salary income and TDS details are consolidated and accurately reported in their ITR. Tools like TaxBuddy help detect missing income and prevent filing errors.
Q11. When is the last date to file ITR for salaried individuals for FY 2024-25?
For the financial year 2024-25 (assessment year 2025-26), the last date for salaried individuals to file their ITR is July 31, 2025, unless extended by the Central Board of Direct Taxes (CBDT). Filing after the due date may attract late fees under Section 234F, which can range from ₹1,000 to ₹5,000, depending on total income. Filing early ensures timely processing of refunds and avoids last-minute portal issues. TaxBuddy users receive timely reminders and updates on filing deadlines to ensure they never miss an important date.
Q12. What if excess tax was deducted by one employer?
If one of the employers deducted more tax than necessary, the taxpayer can claim a refund while filing the ITR. The refund is calculated after consolidating income and TDS from all employers. Once the return is processed and verified, the Income Tax Department credits the refund amount directly to the taxpayer’s bank account. To expedite the process, ensure the bank account is pre-validated on the income tax portal. TaxBuddy automatically identifies excess TDS while preparing the return and ensures the correct refund claim is made during filing.
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