File Income Tax Returns Without Form 16 in Simple Steps
Salaried workers should review their bank statements to identify any extra sources of income apart from their salary, such as interest income or dividends.
Form 16 is an essential document for salaried employees when filing their income tax returns (ITRs). It is given by the employer and contains important information such as tax deducted at source (TDS) and a breakdown of salary components.
As per the guidelines of the income tax department, it is mandatory for employers to provide Form 16 to employees whose income is subject to TDS. However, if a salaried individual does not receive Form 16, they can still proceed with filing their income tax return (ITR).
According to tax experts, it is possible to file your income tax returns (ITR) for the Assessment Year 2023-24 (Financial Year 2022-23) even without Form 16. They suggest that in the absence of Form 16, you can rely on various documents such as payslips, Form 26AS, and investment proofs for claiming deductions. These documents can serve as references to file your tax returns successfully.
Here’s an easy step-by-step guide on how salaried individuals who don’t have Form 16 can file their Income Tax Returns (ITR):
Step 1: It is important to gather all your monthly salary slips or payslips from the relevant financial year. These documents should provide a comprehensive overview of your salary, allowances, deductions, and other income components. If you have changed jobs during the financial year, ensure that you include payslips from all the employers you worked for during that year.
Step 2: Take advantage of allowances that can help reduce your tax liability, such as house rent allowance (HRA) and others. However, when calculating the exemption on allowances, be cautious as some allowances are partially exempt while others are fully exempt.
Step 3: To calculate the taxable income, it is important to subtract relevant deductions such as House Rent Allowance (HRA), standard deduction, and professional tax from the total income.
Step 4: Make sure to verify the Tax Deducted at Source (TDS) deducted by checking your Form 26AS. Form 26AS should include details of TDS deducted not only from your salary income but also from other sources of income. It is essential to cross-check the TDS figures with the information displayed in your Form 26AS as there may be discrepancies. Form 26AS serves as a consolidated statement of all the taxes deducted and deposited against your Permanent Account Number (PAN).
Step 5: Salaried employees should carefully review their bank statements to identify any additional sources of income apart from their salary, such as interest income, dividends, or any other form of income. It is important to include these amounts in the calculation of taxable income.
Step 6: If you have earned rental income from a property you own and have let out, it is necessary to declare it. Additionally, if you have taken a housing loan for either the let-out property or your own residence and are paying interest on the loan, you may be eligible for a tax deduction.
Step 7: It is important to report income from other sources, such as income from proprietary businesses that do not require an audit, interest earned on bank deposits, mutual funds, and similar sources, in your ITR filing.
Step 8: If you have made a profit from selling shares or equity-oriented mutual funds, it is necessary to obtain a capital gain summary statement from your broker or mutual fund house.
Step 9: Check Form 26AS which can easily be accessed through the I-T department website. It has a consolidated statement of all the taxes deducted and deposited against the individual’s permanent account number (PAN).
Step 10: The Income-tax Act includes various sections that allow salaried individuals to claim tax deductions. Some of these sections are 80C, which covers deductions for life insurance premiums, PF (Provident Fund) contributions, equity-linked savings schemes, Public Provident Fund, principal repayment of home loans, and more. Another section is 80D, which covers deductions for medical insurance premiums, among other provisions.
Step 11: Know your tax liability on the total taxable income based on the tax regime opted by you.
Step 12: If the total amount of tax you owe exceeds the amount already paid as per your Form 26AS, you will need to make an additional payment to the tax department for the remaining balance.
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