It’s a must for all salaried individuals to obtain Form 16 from their employers to file Income Tax Return.
Form 16 is a record of Tax Deduction at Source (TDS), and it carries the details of total tax paid in a financial year by a salaried taxpayer. Form 16 is the TDS certificate issued by an employer at the end of the financial year.
However, at times, Form 16 is not received by employees due to multiple reasons. In case the employer faces certain financial issues or plans to shut down the business, obtaining Form 16 could be delayed.
If you change jobs without proper exit formalities, issuing Form 16 could also take time. Still, you can file your Income Tax Return even without obtaining Form 16.
You should ensure that Form 16 is received in a valid format and check all details of the total tax deducted at the source from your salary.
If you don’t have Form 16, you can file ITR by using your salary slip. The monthly salary slips also contain the details of all deductions.
How to File ITR Without Form 16:
Calculate Total Income: You can calculate the total income in a financial year by putting together the amounts received every month. If you switched jobs in a financial year, then also include the salary received from the new employer.
The salary slips should have the details like TDS, Provident Fund deductions, basic salary, allowances and perks.
Calculate TDS With The Help Of Form 26AS:
Calculate the total amount of tax deducted by your employer/employers from the monthly salary slips. Then match this total amount with Form 26AS.
This form can be accessed by logging in to the e-filing website. Form 26AS is a consolidated tax statement which contains details of TDS, tax collected at source, advance tax paid and self-assessment tax.
Calculate HRA deduction:
The employees receiving house rent allowance (HRA) can claim the deduction for this component. If you pay rent, you can claim deductions, but you have to file at least one rent receipt for each quarter of the financial year.
If you have a housing loan, you can also claim deductions on the interest paid. However, if you own a house or earn rental income from a house, then you must report it in your ITR filing.
Income From Other Sources:
Income from other sources like proprietary businesses that do not need an audit, interest earned on bank deposits, mutual funds etc., should be reported in your ITR filing.
Calculate Total Deductions:
Once you calculate total income, the next step is to calculate the deductions under Sections 80C and 80D and others of the Income Tax Act.
All deductions have specified limits. You can claim deductions for EPF, PPF, and LIC deposits up to ₹ 1,50,000 under Section 80C. Under Section 80D, you can claim deductions for the premium paid towards health insurance. For EPF deductions, only calculate your contribution, not the employer contribution.
Once you calculate your total income, deductions and tax liability, match the details with Form 26AS. If your tax liability and TDS details match with the statement contained in Form 26AS, you can e-file your return even without Form 16.