How to File Form 16 Online

Form 16 for Income Tax Return Filing

Form 16 is issued by the employer and serves as a certificate under Section 203 of the Income Tax Act, detailing the salary paid and the Tax Deducted at Source (TDS) during a financial year. It is essentially the summary of your earnings and deductions that ensures you report accurate income to the Income Tax Department. If you are figuring out how to file Form 16 to navigate the ITR process, thoroughly understanding this document should be your starting point.

Form 16 is classified into two parts. Form 16A includes your employer’s TAN (Tax Deduction and Collection Account Number), your PAN, and quarterly TDS details. Form 16B, on the other hand, dives deeper and includes a breakdown of your salary, exemptions, and deductions Under Sections such as 80C and 80D. Other important details included in Form 16 are:

• Assessment year
• Name, PAN, and TAN details of the employer
• Name, address, and PAN of the employee
• Challan Number or Acknowledged Number of the tax deposited
• Details of gross salary, net salary, tax deductions, tax-saving investments, and allowances
• Cess on income tax (including surcharge)

Understanding this document thoroughly streamlines how to file ITR with Form 16. Now, let’s go through the step-by-step approach to file Form 16.

How to File Income Tax Returns Online with Form 16

Filing tax returns can be a bit tricky, but thoroughly understanding the process can make it simple and convenient. The preliminary task is to register with the income tax website. You can do so with the help of your PAN and date of birth. Let’s walk you through the step-by-step process of how to fill Form 16 online:

Step 1: Collect Your Form 16

• First, you need to collect your Form 16 from your employer at the end of the financial year.
• While collecting the form, ensure that it includes Part A (TDS details) and Part B (salary breakup and deductions) and cross-check personal details such as address and PAN.

Step 2: Visit the Income Tax e-Filing Portal

• Go to the official Income Tax e-filling website and log in using your PAN, password, and CAPTCHA code.
• Once logged in, go to the ‘File Income Tax Return’ option.

Step 3: Choose the Relevant ITR Form

• Thereafter, select the ITR form applicable to your income type. Choose the ITR 1 Form if your salary for the financial year is less than ₹50 lakhs and the ITR 2 Form if it is more than ₹50 lakhs.
• Opt for a year of assessment.

Step 4: Fill in the Personal Details

• Use Part A of Form 16 to enter details such as PAN, employer’s name, and TDS deductions.
• Use Part B to fill in your salary components, deductions under Chapter VI-A, such as 80C and 80D, and exemptions under Section 10, such as HRA and LTA.

If you are getting confused about how to file ITR with Form 16, make sure to manually enter the data in the corresponding fields on the portal to ensure accuracy.

Step 5: Verify Your Tax Details

• Once done, check the tax computations as shown on the portal against your Form 16.
• Make sure that the TDS deducted and other details align with the information in the form.

Step 6: Declare Additional Income, if any

• If you have any other sources of income apart from your salary, add them under the ‘Income from Other Sources’ action.
• Other sources of income may include interest from savings, rental income, or capital gains.

Step 7: Claim Deductions and Exemptions

Furthermore, use Form 16 to claim deductions under:

• Section 80C applies to investments such as PPF, ELSS, etc.
• Section 80D for health insurance premiums
• Section 80G for donations made to charitable institutions

Apart from this, verify for exemptions for HRA, standard deductions, etc.

Step 8: Review and Submit

• Thoroughly check the details entered on the portal.
• Click on ‘Preview and Submit’ and ensure all the details are accurate.
• Click submit and complete the verification process with Aadhar OTP, net banking, or EVC.
• Upon successful submission, download the ITR-V (Acknowledgement Form) for future reference.

Tips to Fill Form 16 for Salary

It is mandatory to file Form 16 for every individual who earns income via salary. To ensure accuracy on how to fill Form 16 online, you must provide correct details, such as investments and other sources of income, to your employer to get your Form 16 pre-filled.

Here’s everything you need to know about Form 16 and how to file an IT return:

• Your gross salary
• Deductions such as professional tax, standard deduction
• Deduction under Chapter VI A
• Deduction under section 80C for investments such as life insurance premiums, PPF investments, etc.
• Deduction under section 80CCC for contribution to pension funds
• Deduction for employee’s contribution under section 80CCD (1) to a pension scheme
• Deduction under section 80CCD (1B) for the taxpayer’s self-contribution to a notified pension scheme
• Deduction under section 80CCD (2) for employer’s contribution to a pension scheme
• Deduction under section 80D for health insurance premium
• Deduction under section 80E for interest paid on loan taken for higher education
• Deduction under section 80G for donations
• Deduction under section 80TTA for interest income on savings account
• Total taxable income of the employee
• Rebate
• Tax amount after rebate
• Tax amount payable or refundable

What Can You Do in Case Your Previous Employer Has Not Issued a Form 16?

It can be overwhelming when your previous employer does not issue a Form 16, especially if you are preparing how to file ITR with Form 16. If you find yourself in this situation, rest assured that you can still file your income tax return by following a few practical steps.

Let us look at how to compute your income, calculate tax liability, and file your ITR even when your previous employer has not provided Form 16:

Step 1- Gather all your monthly salary slips for the financial year and add the monthly salary to calculate the gross annual income. Also, make a complete breakup of basic salary, allowances, deductions, TDS, and net salary.

Step 2- Go to the official Income Tax e-filing website and log in using your PAN and password to download Form 26AS. It contains the TDS deposited by your employer. Cross-check the TDS details to ensure accuracy.

Step 3- Next, deduct various exemptions such as travel allowances, mobile data allowance, house rent allowances, etc.

Step 4- Deduct the amount of TDS paid by the employer and claim deductions Under Sections 80C, 80D, etc. After that, calculate the net payable income and the corresponding tax payable using the income tax slab rates.

Step 5- Fill out the ITR form online by entering the details, such as salary, TDS deducted, and income from other sources and pay whatever tax is due. You can use Form 26AS and salary slips as references while filling out the form.

Conclusion

Filling your ITR with Form 16 online may seem demanding, but by understanding the components and following a straightforward approach, you can do it conveniently and efficiently. To ensure accuracy and avoid discrepancies, always double-check your income, TDS, exemptions, and deductions while filing your tax returns. Furthermore, since you are well aware of how to file ITR with Form 16, you should get a reliable insurance policy to maximize tax deductions along with protecting yourself and your family against any medical emergencies.

FAQs on How to File ITR With Form 16