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Understanding Your Options for Filing Without Form 16

In India, you must file your Income Tax Return (ITR) if your taxable income exceeds the basic exemption limit. Usually, most salaried employees use Form 16 while filing their returns. This document summarises your salary and the taxes already deducted. 

However, there are some cases when you don’t receive Form 16. Usually, it happens due to delays, switching jobs, or because you’re self-employed. During these times, it might feel challenging to file your ITR. But don’t worry, there are several ways to manage without it. Let’s see them.

Use these alternatives to Form 16

In the absence of Form 16, you can use the following alternative documents:

1. Salary slips

Salary slips provide details of your monthly earnings, such as:

  • Gross salary
  • Allowances
  • Deductions like Provident Fund (PF) and Professional Tax

Using this information, you can easily calculate your total salary income which is taxable under the head “Income from salary”. 

2. Bank statements

Your bank statements show salary credits and other income sources, such as 

  • Interest from savings accounts or fixed deposits 
  • Dividend received
  • Profit from the sale of shares or mutual fund units

By using bank statements, you can easily track any additional income other than salary. Be aware that you need to declare them while filing your ITR.

3. Form 26AS

Form 26AS is an annual tax statement. You can download it from the official Income Tax Department’s website without any additional charge. 

Using this statement, you can cross-check all the taxes deducted (TDS) from your income by various entities, such as employers or banks. Also, this document reflects any advance tax or self-assessment tax payments made by you.

4. Investment proofs

If you are filing your ITR under the old regime, you can claim several deductions as specified under Chapter VI-A of the Income Tax Act. These are:

  • Section 80C: Includes LIC premiums, contributions to PPF, NSC, ELSS, etc.
  • Section 80D: Medical insurance premiums for yourself or family members.
  • Section 80G: Donations made to charitable institutions.
  • Section 80E: Interest paid on education loans
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These proofs reduce your taxable income and your tax liability. As a tip, try to maintain all the relevant documents that substantiate your deduction claims.

Also, keep the invoices of all high-value purchases made from online marketplaces or offline stores. If your case is picked for scrutiny, sometimes the Income Tax Department calls for these investment proofs and invoices. 

5. Rent receipts

If you claim House Rent Allowance (HRA), rent receipts act as proof of your rent payments. You will need them to calculate the HRA exemption. 

6. Home loan interest certificate

If you’ve taken a home loan from a bank or NBFC, they provide an interest certificate. This certificate shows the interest you paid during the financial year. 

Using this certificate, you can claim deductions on home loan interest payments under Section 24.

File ITR in easy steps without Form 16 

ITR filing without Form 16 seems complicated. That’s because Form 16 has all the required information in one place. However, still in its absence, you can file your ITR smoothly by following these simple steps:

Step I: Calculate total income

Add up all your income from various sources. For this purpose, use several documents, like salary slips, bank statements, and Form 26AS.

Step II: Identify deductions

Identify the deductions you can claim to reduce your taxable income. Make sure you are claiming only those deductions against which you have sufficient investment proof. 

Step III: Calculate tax liability

Calculate your taxable income by subtracting deductions from your gross income. Use the income tax slabs for the financial year and calculate how much tax you owe. In case, your TDS is more than the outstanding tax liability, you will get a refund. 

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Step IV: Choose the relevant ITR form

Income Tax Department has issued various ITR forms for filing purposes. These forms vary based on the income type and sources. For example,

  • ITR-1 (SAHAJ) is for salaried individuals with no business income
  • ITR-3 or ITR-4 is for taxpayers who have a business or professional income

To remain compliant, you must choose the correct ITR form. Be aware, that choosing an incorrect form can invalidate your return. 

Step V: Fill out the form on the official portal

Log in to the income tax e-filing portal and fill out the selected ITR form. Make sure you are correctly entering all the information. Complete the form and make an official submission.

Step VI: Verify your ITR

Lastly, verify your ITR submission using any of these methods:

  • Aadhaar OTP
  • Net Banking
  • Send a signed copy of the ITR-V acknowledgement to CPC, Bengaluru.

Such a verification must be made within 30 days of filing the ITR.

Conclusion

Form 16 is a document issued by your employer. It contains all the necessary information in one place which makes it easier to file an ITR. However, in its absence, you can rely on several other documents, such as salary slips, bank statements, Form 26AS, and investment proofs. 

Use them to calculate your income and claim deductions (if filing ITR under the old regime). Select the appropriate ITR form based on your income sources and fill it out on the e-filing portal. Submit and finally, verify your ITR within 30 days.

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