Income Tax

How do you e-file ITR with multiple Form 16s online?

An e-file ITR with multiple Form 16s is to be considered one of the most necessary documents that are required to be submitted by taxpayers in every financial year to come. It is obligatory for every employer to issue Form-16 if the employer has cut any taxes on behalf of the Government within the given salaries of the employees. It has been observed so many times that the employees are getting jumbled to e-file ITR with multiple Form 16s online, but there are noticeable differences between these forms. The e-file ITR with multiple Form 16s online is meant to combine the income as the salary from the employers and also sum up the tax deducted from the salary. As per the new norms of Income Tax, the employers should be mandated to facilitate From-16 to their employees in the meantime, while the TDC certificate also has to be issued from the employer if the tax has been deducted from the salary in that financial year.

Another thing is that we also need to understand the importance of filing Income Tax Returns (ITR) simultaneously for the understanding of e-file ITR with multiple Form 16s online processes.

Significance of the e-file ITR

The Income Tax Return has to be submitted to the Income Tax Department of India to put in order the pieces of information about the income of the taxpayer and also the taxable income that has to be paid during that particular financial year. The information has to be filed every year, ranging between 1st April and 31st March of the next year. The salary that is earned from various sources of income such as house or property or other capital gains and other things, in that case, if somebody has paid the extra tax, then the individual can file the refund of that particular tax.

There are the following reasons to file Income Tax Returns:

  1. Quickness in Loan Approval

If an individual has applied for a housing loan or vehicle loan, the major banks might ask the individual to provide the ITR, which will help the bankers easily approve the loan income.

  • Act as address proof or Income

If an individual who has filed for Income Tax Returns acts efficiently to act as the income and address proof, it can be accepted by the government in verification.

  • Claiming of Refund of Taxes

Suppose the individual has paid extra taxes in excess in that particular financial year. The individual can claim the refund amount through the filing of Income Tax Returns.

  • Penalty can be avoided.

If the individual has been an eligible citizen of India, they are required to pay the penalty each year. The individual failure to pay the tax amount can result in paying a penalty amount.

  • The VISA Process can be easy.

The individual can be asked by the embassies to provide them with the Income Tax Returns for a couple of years to make the VISA process hassle-free.

Eligibility criteria to e-file ITR

For filing the Income Tax Returns, there have to be certain eligibility criteria. Here is the list of the following candidates, as well as the corporate body below, who are eligible to file ITR every financial year:

  1. A company incorporated under the Companies Act 2013 as a body has to file ITR for its returns every financial year.
  2. If the company is set up outside India or an individual has financial interest outside the country.
  3. Those individuals who are less than 59 years old and who have an annual income of 2.5 Lakh INR should be eligible to file ITR.
  4. It is also applicable to those individuals who are Non-residential Indians (NRIs) earning an income of 2.5 Lakh INR.
  5. A foreign country outside of India can also be included in this category to file ITR if they have a treaty with India for any financial benefits.
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E-file ITR-mandatory or optional

If any individual is earning within the limits of exemption of Income Tax Rules, then it is not made mandatory for them to file ITR each financial year, but for those whose income is beyond the exemption limit set by the Income Tax Rules, then the individual has mandated to file ITR every financial year. If the ITR has not been filed on the prescribed time, then the individual has to pay the penalty, which can lead to difficulty in procuring loans in the future.

Necessary papers required to e-file ITR

Any individual who has started the process of e-filing Income Tax Returns instead of salary slips, bank savings, PAN, and AADHAR. There are also other documents required to make the tax filing process easy, which are the following mentioned below:

  • Form-16 e-file ITR rules

This form has been given to the employees by the employer about the details of their paid salary and also about the TDS (Tax Deducted at Source) charge levied by the employer.

  • Form-16A of e-file ITR rules

This form has to be provided by the employer to the employees about the details of the TDS cut on the interest received on the deposit, such as Fixed Deposits or even Recurring Deposits.

  • Form-16B of e-file ITR rules

If any individual has been selling a property, the particular TDS has been levied on the money received after selling the property; those details have to be filled in this form.

  • Form-16C of e-file ITR rules

If any individual has rented his property, then the TDS details of the rent paid by the tenant have to be filled in this form.

  • Form-26AS of e-file ITR rules

This form is provided in the representation of the cumulation statements of taxes about the PAN number. It also includes TDS by the employer of the individual or even by the bank that has made payment to the individual.

Elaborative information about the multiple Form 16s online under ITR rules

First and foremost is Form 16 among its multiple forms, such as Form 16A, 16B, and 16C, as provided under the ITR rules. First of all, will pick up Form-16 to get a basic idea of its contents and also eligibility to fill this form. Form-16 can be considered as the certificate given by the employer declaring that his employer has submitted it to the Income Tax Department. It contains the deduction of the taxes from the employer in the form of TDS, and that has to be submitted to the Income Tax Department.

Any individual who has been employed and getting a salary whose tax has been deducted by the employer as in the form of TDS should be eligible to receive Form-16 from their employers. This form has been mandatorily issued by the employer to its employees. This form has made it very simple to file ITR. It acts as proof for the employees that the employer has paid the tax in the form of TDS to the government. The employer is duly authorized to issue the From-16 at or before 31st March of the assessment year to e-file ITR before the due date.

Now, it is very important to under the part of Form-16 that is further bifurcated into Part-A (16A) and Part-B (16B) that has to be prepared and filed before the due tax of the Income Tax Return. There are the following components of Part A of Form-16 that are Form-16A below:

  1. Name of the Employee of the organization
  2. Address of the employee of the organization
  3. PAN card details of the employee
  4. Name of the Employer of the organization
  5. Address of the employer
  6. PAN card details of the employer
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Further, the other Pat-B of the From-16 is called From-16B, contains detailed segregation of the computation of the taxes in taking consideration of the investment declaration that has to be filled at the start of the financial year, and it acts as the proof of the investment that is to be submitted later. Other details have to be provided, such as the medical bills, house rent, and other EMIs that have been paid toward the housing loan. There are the following components below given under the Form-16B:

  1. Total Salary
  2. Allowances that have been exempted under Section 10 of the Income Tax rules
  3. Tax levied on the total income
  4. Any exemption on the tax
  5. Any surcharges levied
  6. Also, I will discuss the deductions under Section 80C, which include PPF, EPF, housing loans, and many other tax schemes.
  7. Also includes taxes levied on the employment

The procedure followed for Form-16 to e-file ITR

As we have already seen, From-16 acts as the declaration about the taxes paid to the government issued by the employer during every financial year. It is very paramount for salaried employees as it helps them tender their income tax return filing and also claims the refund under it.

It has been further divided into two parts, Form-16A and Form-16B. Form-16 can be downloaded from the Income Tax Department website. There are certain steps provided below to guide you in filing the Income Tax by using Form-16 of Income Tax rules:

  1. First, try to accumulate all necessary documents such as PAN, AADHAR, bank statements, salary, and other relevant documents.
  2. Try to register on the Income Tax E-filing website and create an account if the individual already has the login credentials.
  3. Navigate to the e-file section and then click on the Income Tax Return to begin this process.
  4. Then, the individual has the option to choose based on their income for the Income Tax Form. If the individual has the Form-16 with him, then he can choose to either fill out the ITR-1 or ITR-2
  5. Fill in all the details required, such as personal pieces of information, details of income, and deductions.
  6. Try to recheck all the credentials filled in the form
  7. After submitting the details, e-verification has to be done through the AADHAR OTP, etc.

Form-16 was unavailable from the employer, but TDS has been deducted.

There is the possibility that the employer deducts the tax from the salary in the form of TDS but did not prove Form-16 as it has been mandatory for the employer to provide Form-16 from the employer. It can be checked online by searching for the TRACES website that the employer has deposited the tax to the Central government and can down form-26AS for the review from the individual.

If it in case the employer has not paid the taxes in the form of TDS, then the liability of paying the tax is on the individual. It can be filled through an online e-file of ITR, and later on, the individual can claim the amount he has paid.

Certain steps to be followed for Form-16 to e-file ITR

  1. Log in to the website of ITR with all the credentials available with the individual
  2. The individual should navigate to the e-file and then only click on Prepare and Submit ITR online
  3. The option of selecting the appropriate Income Tax Return with the assessment year
  4. Try to fill in all the details that have been asked and then only click on the Submit option available
  5. By successfully submitting the appropriate details, the individual will get a flash notification on the computer screen that displays the ITR submitted and processed.

Once these steps have been followed by the individual, e-verification of the details will appear. It can check the email that has been filled out by the individual and can also be used for the individual’s future reference.

Benefits of e filing ITR with multiple Form 16s online

The benefit of filing Form-16 is that it acts as valid proof of tax on time. It also signifies the authenticity of the income that has been earned by an employee, as validated and recorded by the Indian Government. There are following benefits laid down below:

  • Helpful for calculating tax liabilities
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It is the employer’s responsibility to pay the TDS on time. Form-16 will act as the saviour for computing the tax liabilities and also enable the taxpayers to pay the remaining taxes or seek refunds by filing the income tax returns on time.

  • Availability of Credit Card

If the individual has presented the Form-16 for the last two years, then he can avail of the credit cards. Form-16 laws act as the proof of income and statement for income tax eligibility.

  • Availability of loans

The taxpayers might have to show their Income Tax Returns for which they have applied for a home loan, personal loan, or vehicle loan. If an individual takes the cumulation of Form-16A and 16 B, they will get a better picture of the tax saving investments and other period investments such as mutual funds, etc.

  • Make the VISA process easy.

The individual who has been applying for a VISA can be asked by the embassies to submit his For-16 for the last two years update to under the financial stability of the salaried employees while travelling offshore. The embassy can also ask about Income Tax Returns if somebody has another source of income like the Fixed Deposits and other property sales.

Conclusion

The e-filing of income tax returns with the help of multiple forms under Form-16 online has been made very efficient and helpful for taxpayers in facilitating certain benefits after following certain steps that have been discussed above to make sure that the individual should submit it timely to prevent from paying the penalty amount by filling in their income tax details. It is very important to obtain all the Forms under Form-16 gathered from the different employers that have to be matched with income earned by the individual for the whole of the financial year. Try to select a dependable and easy-to-use web-based platform for electronic filing. Numerous commercial and government-approved portals include user-friendly interfaces that walk visitors step-by-step through the process. Check the platform’s legitimacy to protect sensitive personal and financial data. The information that has been gathered from each Form 16 is separately in the online filing of the form. Typically, the web portal would have parts specifically designed for entering data from various employers. Make sure you enter every number precisely to prevent inconsistencies and possible problems with the tax authorities.

FAQ’s

  1. What if any individual has more than one Form-16 to e-file ITR?

    It is possible to have multiple forms if the individual has switched his job within that financial year.

  2. What will happen if an individual has any errors in Form-16 to e-file ITR?

    If at any time an error has been found at the time of receiving Form-16 that has been issued by the employer, then you can ask your employer to correct it properly before filing the Income Tax Returns, and once again, Form-16 has to be checked by the employee, before filing the ITR.

  3. Is it possible to e-file ITR without Form-16?

    It can be possible to e-file ITR without the Form-16 by gathering all other necessary required documents like the pay slip, bank statements, interest certificate, rent receipts, other income details, and their exemptions and deductions.

  4. Is it possible to e-file the ITR yourself?

    You can indeed submit your own ITR online. You must be a registered user of the Income Tax Department's ITR e-filing system to do this. By logging into the portal with their user ID and password, registered users can access the ITR pre-filing and e-filing services. These services are available to individual taxpayers filing ITR-1.

  5. Is it possible to e-file ITR through an online portal?

    Yes, taxpayers can be eligible to perform their ITR filing through the website and also through the income tax portal through their PAN card, User ID, and password, as well as the necessary steps to be involved.

  6. What will be the possible last date to e-file ITR for the financial year?

    The last possible date to e-file ITR for this particular financial year, FY-2023-2024, is 31st July 2024. A late fee can be charged when the due date is over under Section 234A, and a penalty can be charged under Section 234F.

  7. Is it possible to copy all the contents of Form-16s?

    Yes, the individual can keep a copy of all the forms so that you can use them as proof of income earned and the tax deducted.

  8. How much is the salary of the employee eligible under Form-16?

    This form can be issued by the employers on deducting taxes at the source as in the TDS. As per the Income Tax Act, 1961, the payment should be over 30000 INR, which cannot be entitled to exemptions under TDS.

  9. Can the salary be written over the From-16?

    In general, Form-16 is the certificate issued by employers to their employees, which is in the form of a detailed salary paid to the employees.

  10. Is it possible to fill out Form-26AS instead of Form-16?

    Yes, even if you don't have your Form 16 or another TDS certificate, you can still file your ITR. However, it can be problematic that the Form 26AS and Annual Information Statement (AIS) can still be used as the foundation for filing your Income Tax.

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