In past financial year, i had worked for 2 companies. Both the companies have provided form 16. Also, while calculating the income tax, my second employer considered the income, investments, reimbursements and tax paid by previous employer.
Now, when i look at my 26AS entries, i feel that my second employer has made a mistake in mentioning the "Amount paid / Credited". My second employer has considered the income from my previous employer and has entered the details in "Amount paid / Credited". While i can see a separate entry from my previous employer in 26AS. I feel that the second employers made a mistake in making an entry and due which my "Amount paid / Credited" will not match with the total taxable income.
Kindly let me know your expert views and if this is an issue; how to rectify it.
18 March 2016
26AS reflects the taxes paid as per TDS Returns - 26Q. Therefore the Form 16 of your first employer covers the period of employment with them.
Your second employer has considered the emoluments paid to you by the first employer along with the emoluments paid by him and then computed your tax liability and deducted the TDS after giving credit to TDS deducted by the first employer. This is the correct procedure and in his TDS return the second employer would have shown the details of the first employer under the head 'Any Other Income subject to tax' and TDS already deducted thereon..
While filing your income tax return you should return the actual incomes separately in Annexure S of your ITR, even though it may not match the Form 16 figures. Actually the Department would also consider the emoluments reflected in the second Form 16. The TDS deducted would fall short, if the emoluments of the second Form 16 are added to the emoluments of the first Form 16.
Assuming you a person below 60 years, your taxable emoluments were Rs.6,50,000/- in total.. You have availed of full deduction u/s 80 C of Rs.5,00,000/- and both your employers together have deducted TDS of Rs.25,000/- which is the tax payable by you, before availing of rebate u/s 87 A of I.T.Act 1961, if applicable.
Therefore file your ITR and relax. Just ensure you fill up two annexures under Annexure S one for each employer.
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