Income Tax Return Filing without Form 16

Filing your income tax return is an essential task, even if you don’t have Form 16 in hand. Form 16, usually provided by employers, summarizes your salary and tax deductions. But don’t worry, you can still fulfill your tax obligations without it. By gathering the necessary documents, calculating your income accurately, and selecting the right ITR form, you can confidently file your return. In this article, we’ll discuss how to file income tax return without Form 16.

What is Form 16?

Form 16 is an important document that all employers must issue to their employees. It is a TDS certificate that shows the taxable income and deductions of the employee. It is an essential document for employees to file their returns.

When an employer deducts TDS from salaries, income tax requires an employer to issue a TDS certificate each year and no later than 15th June of the financial year immediately after the financial year in which the tax was deducted.

Employers cannot issue Form 16 to employees in certain cases. It is seen that employees whose taxable income is not more than the basic exemption limit, do not receive Form 16 from their employers.

All employees, whether they receive their Form 16 or not, have to file their annual tax return (and it is possible without Form 16) if their gross income exceeds the basic exemption limit of Rs 2.5 lakhs.

Importance of Form 16

Form 16 serves as a primary document for employees to report their salary income, claim deductions, and calculate the tax payable. It provides a summary of the TDS deducted by the employer, making it easier for employees to reconcile their income and taxes. However, not having Form 16 does not exempt you from filing your ITR.

When the employer does not issue Form 16?

Documents required to file Income Tax Return without Form 16

Many of us are confused with a question- Can I file ITR without Form-16? In the absence of Form 16, individuals need to gather alternative documents to ascertain their income and deductions accurately. The following documents are essential: 

• Salary Slips/Pay Stub: Collect salary slips or pay stubs issued by your employer(s) for the relevant financial year. These slips provide details of your earnings, allowances, and deductions. 
• Bank Statements: Review your bank statements to identify any interest income, dividends, or other financial transactions that contribute to your taxable income.
• Rental Agreements: If you earn rental income, gather rental agreements or receipts to determine the rental income and any applicable deductions.
• Investment Documents: Collect relevant investment-related documents such as receipts for life insurance premiums, contribution certificates for Public Provident Fund (PPF), National Savings Certificates (NSC), or any other tax-saving instruments.

How to file Income Tax Return without Form 16?

If you want to know how to file ITR without Form 16, follow these steps:

• Get all your wages or pay slips from the relevant financial year issued by your employer. It must have details of salary, allowances, deductions, and other components.
• Now calculate the taxable income. It can be calculated after considering the salary components like basic pay, allowances, rewards, bonuses, etc.
• Deductions such as house rent allowance, standard deduction, and profession tax must be deducted to arrive at taxable income.
• Check your bank statements for other sources of income beyond your salary, such as interest income, dividends, or some other form of income. They should be included in the calculation of taxable income.
• Now verify Form 26AS which you can access through the IT department website. 

The details deducted at source (TDS) given in the form must match the calculated details of taxable income. If discrepancies are found, the customer, such as an employer or bank, should be contacted. After filing the return, perform an electronic verification.

Final words

In conclusion, filing your income tax return without Form 16 is possible with proper documentation, accurate calculations, and adherence to income tax laws. By following the comprehensive steps provided in this guide, you can fulfill your tax obligations and submit your ITR accurately and on time. Remember to file your return within the due date to avoid any penalties or consequences imposed by the Income Tax Department.

In case of any query regarding how to file income tax return without Form 16, a team of expert advisors from Legal Window is here to assist you at every step. Feel free to reach us at admin@legalwindow.in.