How to File an Income Tax Return without Form 16?

Understanding Form 16

Form 16 is a key document for salaried individuals, containing details about the Tax Deducted at Source (TDS) on their income. It breaks down the salary into various components such as basic salary, Dearness Allowance (DA), House Rent Allowance (HRA), and others. It also includes information about income tax deductions under Sections 80C, 80CCC, 80CCD, 80D, and 80G. This form is issued once a year and serves as proof that the employer has deposited the deducted taxes with the government on behalf of the employee.

How to File ITR Without Form 16 Step-by-step?

Filing your Income Tax Return (ITR) without Form 16 involves gathering alternative documents and performing a few calculations manually. Here’s an easy-to-follow guide for filing your Income Tax Return (ITR) without needing Form 16:

Step 1: Collect All Required Documents

Start by gathering documents that help you compute your total income and tax deductions:

• Salary SlipsTo calculate your annual income.
• Form 26AS (Annual Tax Statement): Shows all Tax Deducted at Source (TDS) entries against your Permanent Account Number (PAN), available on the Income Tax e-filing portal.
• Bank Statements Used to track interest earned and record various financial transactions.
• Investment Proofs For tax-saving instruments underSection 80C (e.g., Public Provident Fund, Equity Linked Saving Scheme), Section 80D (medical insurance), etc.
• Loan Statements For interest certificates related to housing or education loans.

Step 2: Calculate Your Total Income

Refer to your salary slips to determine your total earnings prior to any deductions.

• Basic Salary:Total from all months.
• Allowances: Include House Rent Allowance (HRA), Leave Travel Allowance (LTA), and others.
• Bonuses & Perquisites: Add incentives, bonuses, or any non-monetary benefits.

Step 3: Apply Eligible Deductions & Exemptions

Lower your taxable income by applying for valid exemptions:

• HRA Exemption: Calculated using the least of the following: the actual HRA received, the rent paid minus 10% of the salary, or 50% of the salary for metro cities (40% for non-metro cities).
• Section 10 Exemptions: Like LTA or Children’s Education Allowance.
• Chapter VI-A Deductions:
  • Section 80C: Investments in instruments like PPF, ELSS, Life insurance premiums, etc.
  • Section 80D: Medical insurance premiums.
  • Section 80E: Interest paid on education loans.
  • Section 80TTA: Interest from savings accounts (up to ₹10,000).

Step 4: Cross-Check TDS with Form 26AS

Verify the TDS details from your salary slips and bank interest against the information in Form 26AS ensure they match and are accurate. Any mismatch should be resolved before filing.

Step 5: Compute Your Taxable Income

Subtract all applicable exemptions and deductions from your total (gross) salary.

Taxable Income = Gross Income - Exemptions - Deductions

Step 6: Compute Final Tax Payable

Apply the applicable income tax slab rates to your taxable income to find your tax liability.

Step 7: Pay Additional Tax (If Any)

If the tax liability exceeds the TDS already paid, pay the balance using Challan 280 on the e-filing portal.

Step 8: Fill the Appropriate ITR Form

Access the Income Tax e-filing website and select the appropriate ITR form, typically ITR-1 or ITR-2, for those earning a salary. Input your income, deductions, and tax details accurately.

Step 9: Review and Submit Your ITR

Carefully review all the details before submission. Once submitted, you’ll receive an acknowledgment called ITR-V (Income Tax Return - Verification)

Step 10: Complete E-Verification

E-verify your ITR through:

• Aadhaar OTP (One-Time Password): Sent to your registered mobile number.
• Net Banking Generate an Electronic Verification Code (EVC) via your bank’s portal.
• Physical ITR-V: If not e-verifying online, sign the ITR-V and post it to the Centralized Processing Centre (CPC), Bengaluru, within 120 days.

Components of Form 16

Form 16 is a crucial document for Indian taxpayers, acting as a certificate from your employer regarding your salary income and deducted taxes. It has two important parts:

Part A

This section primarily focuses on tax deducted at source (TDS) from your salary. Here is what you will find:

• Employer and Employee Details: Name, address, PAN, and TAN details of both parties.
• Employment Period: The duration you were employed with the company during the financial year.
• TDS Details: This includes the breakdown of how much TDS was deducted from your salary each quarter and subsequently deposited with the government. You will also find the TDS payment acknowledgment number.
• Assessment Year: The financial year for which the TDS certificate is issued.

Part B

This part dives deeper into your income details and tax calculations. It usually includes:

• Salary Paid: Your gross salary for the entire year.
• Other Incomes: Any other income you might have reported to your employer (if applicable).
• Deductions Claimed: Deductions you availed under various sections like house rent allowance, travel allowance, medical expenses, etc. (if applicable).
• Tax Payable: The calculated amount of income tax you owe based on your total income and deductions.

When is Form 16 Not Issued by the Employer?

If the employer has not made any TDS cut for the financial year, they may or may not issue a Form 16. All employers deducting TDS have to provide Form 16. The certificate proves that the TDS deducted has been paid to the government. However, if the employer deducts TDS but fails to provide Form 16, they will pay a penalty of ₹100 for every day the default continues.

Meanwhile, you should check your Form 26AS to know the TDS cuts, and if it also does not have TDS details, it means the employer did not submit your tax to the government. In such a case, you would pay tax on your income and later claim it from your employer. Documents required in the absence of Form 16:

• Salary slips
• Proofs for HRA, LTA, etc.
• Form 26AS
• Investment proofs for deductions

Tips for Accurate ITR Filing Without Form 16

With some careful preparation and attention to detail, filing your ITR without Form 16 can be a straightforward process. Staying organized and following these key guidelines can make it much easier:

• Double-check personal and income details: Ensure your name, PAN (Permanent Account Number), bank details, and income figures match across all documents.
• Utilize all eligible deductions: Be sure to claim deductions under applicable sections like 80C, 80D, or 80E to lower your tax burden.
• Cross-verify with Form 26AS: Always reconcile your TDS entries with what’s reported in Form 26AS to avoid mismatches.
• Organize and preserve documents: Keep digital or physical copies of salary slips, interest certificates, investment proofs, and loan statements for future reference or audits.
• Meet the filing deadline: File your ITR well before the due date to steer clear of penalties and interest charges.

Discrepancies on Late Issue of Form 16

In some instances, your employer might issue Form 16 after you’ve already filed your Income Tax Return. If you later notice discrepancies between your filed return and the details in the issued Form 16, you don’t need to worry. The Income Tax Department allows you to file a revised return to correct any mistakes or omissions.

For the Assessment Year 2025-26 (pertaining to Financial Year 2024-25), you can revise your ITR up to 31 December 2025. It is important to ensure that the revised return accurately reflects the information from your Form 16 to avoid any future complications or queries from the department.

Benefits of Form 16 for Taxpayers and Income Tax Department

While not mandatory, Form 16 is significant for you and India’s Income Tax Department. Here is why it is important:

For Taxpayers

• Pre-filled information: Form 16 simplifies tax filing by pre-filling crucial details like salary income, TDS deducted, and tax-saving investments declared to your employer. This eliminates manual data entry and potential errors.
• Accuracy and completeness: Having all income and tax details in one place helps ensure your return is accurate and complete, reducing the chances of scrutiny or penalties from the department.
• Claiming deductions: Accurate details on Form 16 help you claim eligible deductions like HRA, medical expenses, and LTA seamlessly, potentially lowering your tax liability.
• Proof of TDS: It serves as proof that your employer deducted and deposited TDS with the government, safeguarding you from potential tax demands in case of employer negligence.
• Loan applications: Many lenders consider Form 16 income proof when processing loan applications, especially for salaried individuals.

Benefits for the Income Tax Department

• Verification and compliance: The department can cross-check the TDS deposited by your employer with the information on Form 16, promoting tax compliance and reducing tax evasion.
• Data accuracy: Pre-filled information helps ensure data accuracy in their systems, streamlining tax administration and analysis.
• Reduced workload: It saves the department time and resources compared to manually collecting and verifying tax information from individual taxpayers.

Final Thoughts

While filing without Form 16 is possible, it requires extra effort and attention to detail. Having Form 16 significantly simplifies the process, reduces the risk of errors, and ensures a smooth tax filing experience.

Therefore, make obtaining your Form 16 a priority. If you encounter issues, reach out to your employer promptly. Remember, timely communication and proper documentation are key to navigating any challenges related to Form 16 and ensuring a stress-free tax filing journey.

FAQs on How to File ITR Without Form 16 and Salary Slip

Suggested Readings

1. Top Benefits of Filing Income Tax Returns (ITR)

2. Section 10(5) of Income Tax Act - Exemption u/s 10(5)