Priya switched jobs in October, picked up two Form 16s in June, and assumed her tax was fully paid because both showed “tax deducted.” When she filed, the portal threw up a balance of over ₹40,000 plus interest. This is the single most common surprise for job-changers, and it is fully avoidable.
Quick answer: If you changed jobs during the financial year, each employer gives you a separate Form 16. You must add both salaries together and file ONE return on the combined income. Because each employer deducted tax as if it were your only job, your total TDS is usually short, so you pay the balance at filing.
Form 16 is the salary TDS certificate your employer issues under Section 203 of the Income Tax Act, 1961. When you work for two employers in one year, each issues its own Form 16 for the months you worked there. You do not file two returns. You file one return that combines both.
Form 16 is the certificate of tax deducted at source on salary under Section 203 of the Income Tax Act, 1961. Salary TDS itself is governed by Section 192. Under Section 192 sub-section 2, if you work under more than one employer in a year, you can furnish details of your other salary and the tax already deducted to one chosen employer, who then deducts tax on your aggregate salary.
The mechanism to do this is Form 12B, prescribed under Rule 26A of the Income-tax Rules, 1962. You give Form 12B to your new employer to declare your previous salary and TDS.
The standard deduction on salary under Section 16 ia is a single deduction on your total salary income, not one per employer. The basic exemption limit and Section 80C investments also apply once across your whole income. When two employers each apply these independently, your combined TDS falls short. The shortfall, plus interest under Section 234B and Section 234C for advance-tax defaults, lands on you at filing.
The administering authority is the Income Tax Department, incometax.gov.in. Form 26AS and the Annual Information Statement on the e-filing portal let you cross-check what was actually deducted and deposited.
Real-life example: Rohan left an IT firm in Pune in September and joined another in November. Employer A's Form 16 showed salary for six months with the standard deduction and the full basic exemption applied. Employer B did the same for the rest of the year, unaware of the first job because Rohan never filed Form 12B. Both deducted tax as if their slice was his only income. On filing his single return, his combined income pushed him into a higher slab, the standard deduction and exemption were corrected to apply once, and he owed roughly ₹38,000 plus interest under Sections 234B and 234C. Had he submitted Form 12B in November, his second employer would have deducted the correct aggregate tax through the year.
Two different problems need two different routes.
If your old employer refuses to issue Form 16: that is a statutory failure under Section 203, not an RTI matter, because a private employer is not a public authority. Send a written grievance to your Assessing Officer or file through e-Nivaran on the e-filing portal.
To: The Assessing Officer / e-Nivaran, Income Tax Department Subject: Non-issuance of Form 16 by employer for FY ______ Respected Sir/Madam, I, [Name], PAN [______], was employed with [Employer name, TAN ______] from [date] to [date]. Despite tax being deducted from my salary, the employer has not issued my Form 16 (certificate under Section 203 of the Income Tax Act, 1961), which I require to file my return correctly. I request that the employer be directed to issue the certificate, and that the deductor's compliance be examined. [Name, signature, date, contact]
If you want proof that the TDS was actually deposited: the Income Tax Department and TRACES are public authorities, so an RTI under the RTI Act, 2005 is appropriate to obtain deposit records.
To: The Central Public Information Officer, [Income Tax office / CPC-TDS] Subject: Request for information under Section 6 of the RTI Act, 2005 Respected Sir/Madam, Please provide, for PAN [______] and TAN [______] for FY ______: 1. Details of TDS challans deposited by the deductor against my PAN. 2. The TDS credit reflected in my Form 26AS and the dates of deposit. 3. Status of any TDS statement filed by the deductor for the period. Fee of Rupees 10 is enclosed. I belong/do not belong to BPL category. [Name, signature, date, address]
Need help drafting either letter? Use the AI RTI Drafter. If the department ignores your RTI, escalate with the First Appeal Builder.
No. You file one income tax return for the year. You combine the salary from both Form 16s and report the total in a single return.
Each employer deducted tax treating its salary as your only income, so each gave you the basic exemption and the standard deduction. On the combined income these apply only once, so the real tax is higher than the total deducted, and you pay the difference at filing.
Form 12B, under Rule 26A, is the form you give your new employer to declare your previous salary and the TDS already deducted. The new employer then deducts tax on your aggregate salary under Section 192 sub-section 2, which prevents under-deduction.
No. The standard deduction under Section 16 ia is a single deduction on your total salary income. Claiming it from each Form 16 will overstate your deductions and can trigger a notice.
Match each Form 16 against Form 26AS and the Annual Information Statement on the e-filing portal. These show the TDS actually deposited against your PAN. If the certificate and the portal disagree, follow up with the deductor before you file.
The employer is obliged to issue it under Section 203. Raise a grievance with your Assessing Officer or through e-Nivaran. Separately, you can use RTI to ask the Income Tax Department for proof that the TDS was deposited against your PAN.
It can be. Interest under Sections 234B and 234C applies where advance tax was short. Paying the shortfall as self-assessment tax before you file keeps the damage smaller than letting it run.