According to the Income Tax Act of 1961, employers deducting tax (TDS) on salary are required to issue Form 16 to their employees on or before 15th June following the fiscal year in which the TDS was deducted. However, if you have not received Form 16 from your employer before the deadline, you can still file your returns using other relevant documents. This article acts as a guide on filing returns without Form 16, outlining everything you need to know about the process.
Instances when salaried employees have to file returns without Form 16
There may be instances when salaried employees are required to file ITR without Form 16. We’ve summed up these instances below:
- If no tax is deducted: If your employer does not deduct TDS from your salary, they may not provide Form 16. This generally happens if your annual salary is estimated to be below the minimum exemption threshold.
- If you exit the company without proper formalities: Employers may not issue Form 16 if you leave the job without completing necessary formalities or break the employment contract by leaving during the mandatory employment time frame.
- If the business goes under: In certain cases, if the business itself goes under, the employer may not provide Form 16 to employees.
Other than that, Form 16 issuance may also be delayed due to administrative issues and negligence on the part of the employer. Since employees cannot access Form 16 directly on the e-filing portal, they can rely on other documents to file their returns. We cover the alternatives in the next section.
Documents needed to file returns without to Form 16
If you are filing ITR without Form 16, you need to keep the following documents handy:
- Salary slips of the relevant financial year
- Bank statements
- Investment proofs
- Proof of LTA and HRA
- Home loan statement
- Form 26AS
Pro tip: If you have made high-value purchases on online marketplaces or offline stores, keep those handy as well.
Procedure to file returns without Form 16
You need to follow these steps to easily file your returns without Form 16:
- Step 1: Collect all your monthly salary slips for the relevant fiscal year. Since your payslips carry comprehensive details about the salary, allowances, deductions, and other income components, they can offer insights into your total taxable income. Make sure to collect payslips from all employers if you have switched jobs during the financial year.
- Step 2: Deduct relevant deductions like HRA, professional tax, and allowances to arrive at your total taxable salary income.
- Step 3: Check Form 26AS for information on TDS deductions. Form 26AS offers insights on TDS collected not just on salary, but also other sources of income like interest income earned from banks and NBFC FDs. Check the TDS figures with Form 26AS to ensure there are no discrepancies.
- Step 4: Report the income earned from other sources including interest earned on bank deposits and savings accounts, rental income, dividends, capital gains from the sale of mutual funds, shares, and property, etc. Add these income earnings to your total salary income to arrive at your taxable annual income.
- Step 5: Check for applicable deductions on your income to lower your tax liability. For instance, if you are paying medical insurance premiums, you can claim deductions u/s 80(D). Likewise, you can claim deductions on tax-saving investments like PPF, NSC, and ELSS funds u/s 80(C). But you should note that all these deductions may not be applicable under the new regime.
- Step 6: Subtract all deductions from your total annual income from all sources to arrive at your total taxable income. Determine your tax liability on the basis of the applicable tax slab. If your total tax liability is more than the tax paid as per Form 26AS, pay the dues immediately. Alternatively, if deducted taxes are more than what you owe, claim a refund for the excess amount.
- Step 7: Log into the e-filing portal with your credentials and file your returns using the relevant ITR form according to your income source and other parameters. Carefully fill in the details to ensure accuracy and remember to verify your ITR within 30 days of submission.
Conclusion
Form 16 comprises a comprehensive breakdown of your taxable salary income and taxes already deducted, making it easier to file ITR. However, it is not a mandatory document to file your taxes. In other words, you can still legally file your returns without Form 16 with other alternative documents like your payslips, Form 26AS, and investment proofs to claim deductions. You can use the guide outlined above to understand the step-by-step process of filing returns without Form 16.
