Switched Jobs This Year? Avoid This ITR Blunder If You Had Two Employers

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Double Salary, Double Trouble? Avoid This ITR Blunder If You Had Two Employers

Individuals who switched jobs this year or worked for multiple employers must take extra care when filing their Income Tax Return (ITR). It is crucial to declare salaries from all employers to avoid tax notices and additional dues later.

Form-16 serves as the primary proof of salary from each employer. When filing your tax return, closely examine the information provided in your Form-16. Ensure you check your total gross salary, allowances, and deductions claimed, as well as any deductions under Chapter VI-A, such as 80C or 80D, along with your Tax Deducted at Source (TDS).

If you have received income from more than one employer within the same financial year, it is essential to report each salary and related deductions separately in your ITR form. Avoid mixing the incomes; each employer’s income should be detailed in its own section to prevent overlaps and mistakes.

Exercise Caution with Deductions

A common error is the double claiming of deductions. For instance, under Section 80C, you can claim a maximum of Rs 1,50,000 per year, not for each job separately. Therefore, total your actual investments and claim the overall amount, rather than the sum reported by both employers.

Accurate Reporting of TDS

Your ITR includes a dedicated ‘Schedule TDS’ section. Here, you must specify each employer’s TDS, including their name and Tax Deduction Account Number (TAN). If you switched jobs, your new employer may not have considered your previous salary and TDS, potentially leading to additional tax payments as Self-Assessment Tax before submitting your return.

Taking the time to verify your figures is vital if you have changed jobs this year. Reporting all income accurately and claiming only what you are eligible for will keep your tax affairs in order and help you avoid penalties.