The deadline for filing Income Tax Return for the financial year 2021-22 is approaching. Individual taxpayers are required to file ITR by July 31. So you should start preparing for it from now on. You will not have to worry about this at the last minute. If you have changed jobs during the last financial year, then it is important for you to know how to file ITR.
Companies issue Form 16 to their employees. It is mandatory for companies to issue Form 16 by June 15 every year. Form 16 contains the details of the salary received from the company. It also includes how much TDS has been deducted by the company during the financial year. It also contains details of your HRA, standard deduction and deductions received under 80C.
First of all, you have to ask for Form 16 from both the new and old companies. The new company itself will send you Form 16. You will have to request for this from the old company. It would be good that you send a mail to the HR of the old company about this today. After getting Form 16 of the new and old company, you should also check its details once.
Part B of Form 16 gives the break-up of gross salary. The deduction claimed by you and allowances which are not chargeable to tax will also be included in this. You have to add the total gross salary received from both the companies. You have to add the amount of HRA, LTA from both the Form 16. This will give you the amount on which you have to claim tax exemption.
Employed people are allowed standard deduction of 50,000 in a financial year. It may be that standard deduction of Rs 50,000-50,000 is given in both your Form 16. Remember, you have to claim standard deduction of Rs 50,000 only once.
Now you have to claim deduction under 80C, 80D etc. Total taxable income will include salary income, interest earned on bank account, dividend received from shares, etc. You have to keep in mind that you can claim this deduction only if you have opted for the old system of tax.
After calculating the total taxable income, you need to calculate the tax liability. Deduct all the taxes which have already been deposited along with your PAN after deducting. You will get the TDS amount in Part A of Form 16.
Even if a taxpayer has not received Form 16 from the company, he can still file Income Tax Return. For this he will need his salary slip. On the basis of this, the gross taxable salary will have to be calculated. After this the income from other sources will have to be added to it. However, if possible, you should try to collect Form 16.