ITR Filing without Form 16: Almost all salaried taxpayers wait for their employers to hand over Form 16 to them for filing income tax return (ITR). Though Form 16 makes it easier to file tax returns for salaried taxpayers, ITR filing is possible even without Form 16 if you have with you other documents like salary slips and Form 26AS.
You can also use Annual Information System (AIS)/Tax Information Summary (TIS) for more details on financial transactions done during the fiscal year to file tax returns. First, you should know about these documents and utilities which will help you file income tax returns in the absence of Form 16.
Form 16 and Form 26AS
Form 16 is a certificate issued to you by your employer upon deduction of tax during a financial year from your salary. Simply put, Form 16 confirms that the Tax Deducted at Source (TDS) has been deposited with the income tax department on your behalf.
Form 26AS offers a comprehensive overview of your financial activities during a specific year, extending beyond just TDS and TCS (tax collected at source) transactions. It acts as evidence of income and tax payments, associated with your PAN number.
Annual Information System/Tax Information Summary
AIS is the extension of Form 26AS, showing details of property transactions, high-value investments and TDS/TCS transactions made during the financial year. Further, AIS includes savings account interest, dividend, rent received, purchase and sale transactions of securities/immovable properties, foreign remittances, interest on deposits, GST turnover etc. AIS presents both the reported value and the modified value, reflecting adjustments made based on taxpayer feedback.
A vital component within the AIS is the Taxpayer Information Summary (TIS), which provides significant summaries of the taxpayer’s information.
Where do you find Form 26AS?
Form 26AS can be found on ‘TRACES’ website by clicking on the link https://www.tdscpc.gov.in/app/login.xhtml. Once the website opens, click ‘Request for 26A/27BA’, which you can find under the ‘Statement/Payments’ section.
TRACES, a web-based application of the I-T Department, provides an interface where one can view challan status, Form 16/ 16A/ 16B/ 16C/ 16D/ 16E/ 27D as well as annual tax credit statements.
Here is a step-by-step guide to efficiently file your ITR even without Form 16:
Keep all your salary slips for the fiscal ready for ITR filing
Your salary slip contains all the major components of your remuneration you receive monthly. These components make together your taxable income. So, when Form 16 is not available, the break-up of salary and particulars of taxable income can be known from your pay slips.
Download 26AS statement online from TRACES portal
As mentioned above, Form 26AS gives you a record of all TDS deductions from various sources of income for the financial years.
Form 26AS is beneficial in two key ways: it reveals TDS deductions on your salary income, and secondly, it notifies you of any TDS deductions on other sources of income earned during the year, allowing you to disclose them accurately while filing ITR.
Calculate your deductions
Calculate all your major expenditures and investments that can lower your taxable income through deductions and exemptions under the income tax laws. Investments like PPF, NPS, ELSS, insurance and ULIPs enjoy tax deduction benefits, while there are certain incomes like HRA, agri income, various allowances exempted altogether from tax liability.
Compute income from other sources
Apart from salary income, individuals may also have earnings from other sources. Compute incomes from rentals, shares and mutual funds, sale of assets, and others. Summarize the total income and its respective amounts for accurate disclosure when furnishing your return of income. These various income sources might influence your selection of the appropriate ITR form.
Compute taxes payable
Once you have computed sources of income, deductions to be claimed and TDS already deducted, the final computation of income leads to two possible outcomes: either you’ve paid excess taxes or there’s still a tax amount payable. In case of excess taxes paid, you are entitled to a refund upon ITR filing. In the second scenario, where you owe taxes to the Income Tax Department, you will have to settle it by paying the differential amount.
Choose the appropriate ITR Form
The next step is selecting the appropriate ITR form for filing of tax return. The selection of form depends on your sources of income and the amount of wealth earned. You must make sure that you have provided accurate details and that too in the correct form, otherwise your ITR may be invalidated.
File and submit ITR Form
The final step is submitting your return to the Income Tax Department. It’s crucial to e-verify it within 30 days to complete the return filing process in compliance with regulations.