How to File Income Tax Return without Form 16

For a salaried individual, Form 16 is an important document, which is used for filing the income tax return. It is almost impossible for salaried individuals to file income tax return without Form 16. However, there can be some instances where you do not receive Form 16 from the employer due to the closure of business or if you changed the job without completing the exit formalities properly. In this case,you can use other documents as references to file your return.

Understanding Form 16

Form 16 is an important form for salaried employees like you. It carries information of the Tax Deducted at Source (TDS) on salary. The tax is deducted by the employer. The form will also provide a breakup of the salary into different components including income from salary, income charged as salary, which includes Dearness Allowance and House Rent Allowance, among others, and income tax deductions under Section Section80G, Section80D, 80CCD, 80CCC, and Section80C. It will also mention the details of the TDS. This form is issued once in a year to the salaried employee and it is an evidence that the TDS is deposited by the employer on behalf of the employee.

What are the components of Form 16?

• Part A has details of TDS and name, address, Permanent Account Number (PAN) and TAN of the employer, and PAN of the employee.
• Part B is an annexure to Part A and contains salary breakup, deductions under Chapter VI-A, and relief under Section 89.

When is Form 16 not issued by the employer?

• No TDS was deducted, and hence, no Form 16 was issued: If the employer has not made any TDS cut for the financial year, he/she may or may not issue a Form 16.
• TDS was deducted but Form 16 not issued: All employers deducting TDS have to provide Form 16. The certificate is proof that the TDS deducted has been paid to the government. However, if the employer deducts TDS but fails to provide Form 16, he/she will pay a penalty of Rs. 100 for every day the default continues. Meanwhile, 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
• Proof for HRA, LTA, etc.
• Form 26AS
• Proof of investments for eligible deductions under Section 80C, 80D, etc.

How to file ITR without Form 16 – Step by Step Guide

Follow the below-mentioned guide to understand how to file ITR without Form 16.

1. Calculate income from salary

You need to use your salary slips to compute the income from salary. You can collect the slips from your employer who will also provide a breakup of the salary income. The details include gross salary along with value of perquisites, professional tax, allowances exempted under Section 10, and entertainment allowance. Apart from these, the salary slip will also include details of the TDS and amount deducted for provident fund. You can now compute the income from salary. Additionally, claim the standard deduction of INR 40,000 for the financial year 2018-19. This amount is increased to INR 50,000 from this financial year.

2. Compare the TDS deducted with Form 26AS

Form 26AS contains details regarding the TDS amount deducted from all income sources, which includes the income from salary. You need to crosscheck the TDS figures shown on 26AS and see if there are any discrepancies.

3. Calculate income from house property

If you have any rental income from a house property owned by you, it is important to report it under this head. If you have taken a home loan, and are paying interest on it, you will get a deduction of the same under the head.

4. Calculate income from capital gain

For sale of equity or mutual funds, you need to pay a capital gain tax if the returns are more than INR 1 lakh and if it is held for more than one year.

5. Calculate income from other sources

You need to calculate the income earned from other sources such as interest on bank deposits and interest on an income tax refund.

6. Claim the deductions

You can claim deductions under Section 80C, 80D, and 80G, among other sections. Every deduction will have a specified limit.

7. Calculate the tax

You now need to deduct the deductions from the total earnings to get the final taxable income. You can now estimate the income tax liability, pay tax, and file the ITR.

Now you know how to file income tax return without Form 16. It is a simple process if you do the needful systematically.

FAQs




1

What is Form 16?

Form 16 is a tax certificate mandatorily issued by the employer to its employees. This certificate is proof of the tax deducted at source (TDS) by the employer, from the income of a person, and submitted to the government.





2

Received my Form 16 late; what if there are any discrepancies?

If you got Form 16 late with some errors, you can ask your employer to rectify it and generate a new one and then file ITR.





3

How can I get Form 16?

Form 16 is issued by employers directly. However, you can also download it online from the Income Tax Department’s website.




4

Can I file my return if I don’t have Form 16?

You can file your ITR without Form 16.

• Compute income from salary slips, and adjust allowances like HRA, LTA, etc.
• Verify the TDS details on Form 26AS.
• Calculate income from house property.
• Compute income from capital gains. Capital gains up to Rs. 1 lakh is exempt from taxes.
• Determine income from other sources like interest on fixed deposits, savings accounts, etc.
• Claim all available deductions under Section 80C, 80D, etc.
• Compute total taxable income and tax liability after adjusting the deductions.
• Pay tax, if your liability is more than the tax paid according to Form 26AS.
• File your annual ITR without Form 16.




5

Is it mandatory for an employer who deducts TDS, to issue a certificate?

Yes.




6

If Form 16 has not been issued to me, does it imply that I don’t need to pay tax or file a return?

If you do not have Form 16 and you are below the taxable limit, you do not need to pay tax or file a return. However, if you do not have Form 16 but have paid TDS, you must contact your employer and get Form 16.




7

Which particulars should be filled & verified in Form 16?

Form 16 is issued by the employer. Employees only need to check for any discrepancies. If any exist, the employee must contact the employer and get it rectified.




8

Do I need to file an ITR if I have received Form 16 and Form 16A?

Yes.




9

Why is Medical Allowance not reflected in Form 16?

Medical allowance is excluded in Form 16 because it is a deduction under Section 80D.




10

Why do all the employees not get Part A of Form 16?

Employees below the taxable limit are exempt from income tax, and so no Form 16 is issued.