I had worked in 2 companies during the last financial year. Can I show the income received only from the last company and file my income tax return?
This is the most common question which we come across during the tax filing season from those people who worked in 2 companies during the last financial year.
TDS by both the companies – If you see your Form 16 issued by both the employers, you will find that both of them have deducted tax (TDS) and remitted to the department.
Reporting of TDS to the department – The companies would have filed TDS returns with the department and through this return, they would have mentioned TDS amount remitted against your PAN.
Check your statement through 26AS Statement – You can login to your account in income tax website and view form 26AS. TDS done by both the companies would reflect in your 26AS form. (Read article on what is form 26AS and how to view the tax credits)
If the TDS amount is appearing in 26AS, you can’t avoid showing the salary income of the first employer (or one of the employers). Income Tax department has a mechanism to trace the miss-match in tax declared to tax shown in 26AS form. So, even if you avoid paying taxes while filing the return, there is every chance of getting Notice from the department.
Please note that delayed payment attracts not only interest but also penalty. So, we advise you to declare the salary from both the employers (and multiple employers) and file the return accordingly.