Background Checks: Is It Normal for Companies to Ask for Your Previous ITR Documents?

Can a company request ITR documents from the previous organization during a background check?

Hi, it depends. If you are joining in the middle of the financial year, the Payroll/Accounts team will ask for computation of previous employment along with your investment projection to determine your monthly income tax (IT) deduction.

My last company's salary was below 2.5 LPA, so my company didn't fill up Form 16. In that case, what should I tell my new HR?

Hi, if Form 16 is not available, they will ask for the computation of total income for that financial year.

Hi, The computation of total income can be obtained from your past employer. It is essentially a statement showing all your earnings and allowances earned, investment proof declared, and income tax deducted. Money received from your parents or friends will not be considered as part of the total earnings as far as the new employer is concerned. However, if you have received a large sum of money from your parents or acquaintances through a bank transaction, then you will need to calculate and pay additional income tax at the time of filing, apart from what the employer has already deducted.

ITR Meaning
ITR means Income Tax Return, which is related to income verification.

The question is not really clear. What do you mean by ITR of the previous company? Are you referring to your individual ITR or the ITR of the company you used to work for?

No need to provide your income tax document; it is your private document. No background verification can be done through ITR because it can be created and filed based on our requirements, such as loan purposes, tax purposes, and other reasons. Additionally, we can adjust the income by amending the return. Therefore, it is not useful for background verification.

Regards, varma5274.