Taxpayers who changed jobs during Financial Year 2025-26 must include compensation from each employer when filing their Income Tax Return for Assessment Year 2026-27. According to CA Abhishek Soni, CEO & Co-founder of Tax2win, employees who switched jobs during the financial year are likely to receive separate Form 16s from each employer. The key requirement is to not report only the latest employer's salary, as this can lead to incorrect tax calculations and potential tax notices later. Missing income from a previous employer can lead to incorrect tax calculations, tax dues, delayed refunds or even a notice from the Income Tax Department, emphasizing the critical importance of comprehensive reporting.
To file ITR with multiple Form 16s, taxpayers must collect salary details from every employer they worked for during the financial year. As reported by Tax2win, if previous employers have not provided Form 16, taxpayers should contact them and ask for the Form 16 at the earliest to ensure timely ITR filing. The process involves adding gross salary from each employer and reporting the combined salary in the ITR, along with including the TDS deducted by all employers while filing the return. For FY 2025-26, taxpayers should also gather Form 16 issued by the employer, salary slips (where required), Annual Information Statement (AIS), Taxpayer Information Summary (TIS), interest certificates from banks and post offices, and statements relating to sale of shares, mutual funds, property, or other capital assets.
Taxpayers must claim the total TDS deducted by all employers and verify that the TDS shown in salary certificates matches the details available in Form 26AS and Annual Information Statement (AIS). According to CA Abhishek Soni, if taxpayers changed jobs during the year and did not inform their new employer about their previous salary through Form 12B, their new employer may not have deducted enough tax. In such cases, taxpayers may have to pay the remaining tax along with applicable interest while filing their ITR. Additionally, interest earned from savings accounts, fixed deposits, recurring deposits, and post office deposits should generally be disclosed, even if tax has not been deducted. One of the most common mistakes employees make after changing jobs is failing to submit Form 12B to their new employer, which can result in additional tax liability and interest on the shortfall.
Before submitting the return, taxpayers should check the pre-filled salary details on the income tax portal carefully. As reported by Tax2win, even if salary information is pre-filled, taxpayers must compare it with their salary certificates and update it wherever required before submitting their return. This verification process helps prevent notices, extra tax demands, and refund processing delays by reviewing all salary and tax information prior to filing. Ensure deductions are claimed only where eligible under the applicable provisions of the Income-tax Act and filing the return alone is not sufficient - your return should also be e-Verified within the prescribed time limit. A diligent review of your salary income, TDS records, deductions, and tax-related documentation can help make tax filing routine and seamless.
