File ITR without Form 16

Form 16 is quite important for a Salaried individual to file Income Tax Returns.

What is Form 16?

This document is nothing but a TDS certificate, which consists of all the details related to your salary, tax liability and the tax deducted at source from the income that is taxable under the head “Salaries”.

There may be times when an employer is unable to issue Form 16 on time or he didn’t issue it at all to his/her employee. Well, you don’t have to worry in such a situation as we at All India ITR will help you file IT Returns without Form 16, with these simple steps: -

Step 1

Calculate Your Gross salary

 Since you don’t have form 16, you will have to divide the salary you have received to get your gross income. You need to compile all the details of your Gross Salary, Other Allowances paid to you, etc from your monthly salary slips or bank statements. You need to add the amount of salary credited every month for the relevant period, that is the Financial Year. You must keep in mind that, your gross salary is calculated for reporting it in ITR. The amount of salary credited is supposed to have various allowances provided by the employer.

Step 2

 Claim your exemptions

 Income Tax Department gives you the liberty to deduct the exempt allowances from salary to get a figure that is considered as taxable salary. Click here to know more about allowances and how they are taxed. According to the allowances you can calculate your Allowance exemptions. You will have to reduce this amount from your gross salary.

Step 3

Deduction of Professional Tax

You can reduce the Amount of Professional Tax paid by you pretty easily. You can get it from Salary slips, if your employer has paid Professional Tax after deducting it from your salary. After reducing same, you will get your taxable salary.

Step 4

Calculate Income from House Property

 If you receive rental income from house property or if you are the owner of a property on which you have taken Housing Loan and you are paying Interest on same, you will have to disclose the same in your income tax return. You can claim following deductions in case you have taken housing loan.

1) Interest - For the property that is self-occupied, maximum deduction that can be claimed on interest is Rs. 2,00,000.

For the property, that the owner has let out the entire interest on the home loan can be claimed as deduction.

2) Principal repayment - Principal amount, that is repaid on housing Loan can be claimed as deduction, according to section 80C. Maximum amount that can be deducted is Rs. 1,50,000

3) Stamp Duty and Registration Fees - The Stamp Duty and registration fees that you have paid while buying the property can be claimed as deduction under section 80C. Maximum amount that can be claimed is Rs. 1,50,000. The total amount has to be reported as income from house property. You can claim 30 per cent from this income as standard deduction in case of rental income and you are also allowed to deduct municipal tax amount under your name, for the property by which you are receiving rent.

Step 5

Calculate capital gain income

If you have sold any capital asset, you will have to declare capital gain on the same asset, for the year in which you have sold your capital asset. You can compute Capital Gains automatically while filing return through AllIndiaITR.

Step 6

Show Income from other sources

If you have not mentioned any kind of income in the above-mentioned steps, then you can include it under other sources. Any kind of interest income, gift or winnings can be declared under this head. The amount of Interest that you have earned on Bank Saving Account, should also be declared in Income Tax Return. Deduction as per section 80TTA is allowed on the income from other sources and you can claim upto Rs 10,000/- under this head. You cannot claim this deduction for the Interest on Bank Fixed Deposits.

Step 7

Claim your deductions

 Once you have disclosed your entire income, finally you can claim the tax benefits on LIC, Mediclaim, investments made in the post office savings scheme, NPS, pension funds, PPF, donations, etc. Remember, you must have documentary proofs of the same. Also, if you are living in a rented house and HRA is not received by you, you can claim a deduction for the rent that you have paid under section 80GG. You will have to submit your rent receipts to your employer.

Step 8

Claim Taxes/TDS paid

After all your Income and Deduction details are entered, you will have to claim TDS other you’re your Salary, an individual mentions TDS on Salary at the time of submitting your salary details and Taxes if paid separately. You can get your TDS related details from your Form 26AS from the Income-tax department’s website. In Form 26AS, you will get the exact amount of tax deducted for a financial year against your PAN. If there is any issue related to TDS deduction, you need to contact your employer and rectify the error.

Step 9

Payment of balance tax dues

Once you have claimed your deductions, you need to check the amount of payable tax, if any, in your income tax computation. If you have paid less taxes, than what you were supposed to pay, make the payment of the same.

Step 10

File your return

Last but not the least, file your IT return and download the acknowledgement. E-verify your acknowledgement or sign it and send it to CPC, Bangalore.

You saw how easy it is, to file your Income Tax return, even without form 16. For any further tax related queries, contact our experts by clicking here.