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Form 16, one of the most essential documents required by taxpayers to file an income tax return (ITR), is issued by an employer every year. However, if taxpayers switch jobs and work under multiple employers during the same financial year, they will have more than one Form 16 since every employer will issue it.

Each of Form 16s will have all the details such as gross total income from salary, tax deducted at source (TDS), and 80C deductions.

So, according to Kapil Rana, founder and chairman, HostBooks Ltd, in such a case, taxpayers will have to consolidate all the incomes and thereafter compute the tax liability according to the applicable slab rate while filing ITR.

As per the income tax rule, taxable income is computed considering all sources of income.

"After computation of taxable income under the head "income from salaries," one must include income from any other sources if any arising during the year. Thereafter, deductions under Chapter VI-A from such gross total income shall be provided. It is possible that all the employers have allowed a certain specific deduction in Form 16 but it can be availed only once during the year. So, taxpayers will have to note that," said Naveen Wadhwa, DGM, Taxmann.

Now, the tax should be computed on total income computed after providing for deductions. Thereafter, TDS deducted by all the employers during the year and any other amount of TDS as reflecting in form 26AS should be reduced from the total tax to compute the tax payable if any during the year.

Form 16, as we know, provides details of TDS/TCS for various transactions between deductor and deductee. It has two components — Part A and Part B.

Part A includes components such as name and address of the employer, TAN and PAN of the employer, PAN of the employee, a summary of tax deducted and deposited quarterly, which is certified by the employer. Part B contains a detailed breakup of salary, a detailed breakup of exempted allowances under section 10 and deductions allowed under the Income Tax Act (under chapter VIA).

In case an individual loses Form 16, they can request a duplicate one from their employer.