Form 16 is a TDS certificate issued by employers to outline the salary paid, salary components, and tax deducted. While the employer is responsible for issuing Form 16 to all employees who have incomes subject to TDS, sometimes there may be delays in issuance. If your annual income is above the basic exemption threshold of Rs. 3 Lakhs (new regime) or Rs. 2.5 Lakhs (old regime), you must file your ITR on time – regardless of whether the employer has issued Form 16 or not. You can simplify the ITR filing process without Form 16 with the tips outlined in this article.
Tips to help you file returns without Form 16
The 5 easy tips outlined below make the ITR filing process without Form 16 as simple and hassle-free as shopping at an online marketplace:
Gather all the relevant documents
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If you do not have Form 16, the first step is to gather all the necessary documents that can act as alternatives in the filing process. Essential documents needed to file ITR without Form 16 include salary slips, Form 26AS, bank statements, investment proofs, and any other supporting document that’s related to your income, deductions, and taxes paid. Spend some time double-checking all the documents submitted to avoid errors in personal details and income figures.
Check and claim all applicable deductions
Claiming applicable deductions under the various provisions of the Income Tax Act can help you lower your overall tax liability. For instance, you can claim tax deductions of up to Rs. 1.5 Lakhs under Section 80(C) on investments like PPF, life insurance, and EPF. Similarly, u/s 80(D), you can also claim deductions of up to Rs. 25,000 (Rs. 50,000 for seniors) on medical insurance premiums paid during the year. Remember to claim all the applicable deductions to maximise tax savings.
Correctly calculate income from other sources
To file your ITR without Form 16, you must compute income from all sources, including salary. In other words, you must also calculate income from rent, capital gains, business income, and interest earnings. For instance, if you have multiple bank or NBFC FDs, interest earned on each of these investments must be added to your total annual earnings to compute your total income for the relevant fiscal year. Review your financial records carefully to ensure that you account for all income earned during the relevant financial year and avoid discrepancies.
Cross-check TDS with Form 26AS
Inaccuracies in TDS figures can be avoided by cross-checking TDS deducted with Form 26AS. Form 26AS essentially serves as a consolidated statement of all taxes deducted and deposited against a particular assessee’s PAN. In other words, it offers a detailed snapshot of all your TDS details. You can visit the e-filing portal to access Form 26AS and check your income details with the TDS details outlined in the form.
Remember to e-verify your ITR
Lastly, remember to e-verify your ITR within 30 days of filing. Since ITRs submitted without e-verification are considered incomplete, they are not processed by the Income Tax Department. There are different e-verification methods listed on the portal. One of the easiest ways to e-verify your ITR is using the Aadhaar OTP method. You can also e-verify your submission through net banking, a digital signature certificate, or via EVC generated through a pre-validated bank account/Demat account.
Conclusion
Most taxpayers may find filing ITR without Form 16 challenging. However, with a few easy tips and a methodical approach, you can instantly simplify the process. Using a few easy tips like gathering all the relevant income documents ahead of time, claiming applicable deductions, cross-checking TDS deductions, carefully computing annual income from all sources, and e-verifying ITR on time, you can easily file your taxes and avoid late filing penalties.
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