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ITR filing: If you have changed jobs during the financial year 2025-26, filing your income tax return may require more attention than usual. While employees
who switched jobs during the year generally receive two Form 16s, one from each employer, the bigger issue is whether the new employee had complete information about salary and tax deducted by the previous employer. One document that can help avoid a mismatch in tax deductions is Form 12B. Employees who join a new organisation during the financial year can provide details of their income from the previous employer through Form 12B. This allows the new employer to take the earlier salary and tax deducted into account while calculating the employee's overall tax liability and deducting tax at source (TDS). Also Read | NPS Pension Calculator: How much to invest at age 30 for Rs 50,000 monthly pension after retirement
What is Form 12B and why does it matter?
Form 12B is a statement containing details of salary income earned by an employee from a previous employer during the same financial year. It is relevant when an individual changes jobs before the end of the financial year, as per the income tax department.
The form typically includes details such as salary received from the previous employer, tax deducted at source and other relevant components needed for calculating taxable income. The employee can submit these details to the new employer so that the latter can consider the previous employment income while calculating TDS.
This becomes particularly important when an employee changes jobs midway through the financial year. If the new employer does not have information about the salary received from the previous employer, TDS calculations may be based only on the income earned from the new employer.
How can missing Form 12B lead to a tax bill?
The final income tax liability of an individual is calculated on their total taxable income for the financial year. However, when a person changes jobs, the two employers may independently calculate and deduct TDS based on the salary paid by each of them.
For example, suppose an employee works for one company for six months and then joins another company. If the second employer is unaware of the salary received from the first employer, it may calculate TDS only on the salary it pays during the remaining part of the year.
As a result, the total TDS deducted by both employers may not be sufficient to cover the employee's actual tax liability on the combined annual income. The employee may then have to pay the balance tax while filing the ITR.
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Changed jobs but did not submit Form 12B? You can still file your ITR
Not submitting Form 12B does not prevent an employee from filing an income tax return. However, the taxpayer needs to ensure that income from both employers is correctly reported in the ITR.
Employees who have changed jobs should collect Form 16 from both employers and check the salary and TDS details. They should also reconcile these details with Form 26AS and the Annual Information Statement (AIS) available on the income tax portal.
If the total tax deducted during the year is lower than the final tax liability, the taxpayer will have to pay the additional amount as self-assessment tax before filing the return.
Two Form 16s? Don't forget to combine your salary income
- Receiving two Form 16s does not mean that the taxpayer has to file two separate income tax returns. Both salary incomes need to be clubbed together while calculating the total income for the financial year.
- Receiving two Form 16s does not mean that the taxpayer has to file two separate income tax returns. Both salary incomes need to be clubbed together while calculating the total income for the financial year.
- Any discrepancy between the information in Form 16, Form 26AS and AIS should be checked and corrected before submitting the return.
Form 12B can help, but the final tax responsibility remains with you
Form 12B can help an employee provide the new employer with information about income earned from the previous employer. This may help the employer calculate TDS more accurately during the remaining months of the financial year.
However, the ultimate responsibility for reporting total income and paying the correct amount of tax rests with the taxpayer. Even if TDS has been deducted by both employers, the employee should not assume that the entire tax liability has been settled.
For employees who changed jobs during FY26, it would be beneficial to review both Form 16s, Form 26AS, and the AIS before filing their ITR. This helps identify any TDS shortfall and avoids last-minute hassles.
(Disclaimer: The above article is meant for informational purposes only and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)
