New deadline for employers to issue Form 16 to employees is July 31, 2021 and the individual taxpayer can file the Income Tax Return till September 30, 2021.
The last date to file income tax return (ITR) for the financial year 2020-21 has been extended till September 30,2021. The ITR filing last date is generally July 31 of the year till which the returns can be filed for the relevant assessment year. “As per Income Tax Act, Due date for filing Income Tax Return of Individual Taxpayers is 31st July. For FY 20-21, CBDT has extended the due date to file Income Tax Return of Individual Taxpayer to September 30, 2021 and now the Individual Taxpayer can file his Income Tax Return till 30th September,” says Sujit Bangar, Founder Taxbuddy.com.
Salaried employees get Form 16 from their employers which help them in filing the ITR. However, the last date by which the employers can provide Form 16 to their employees has also been extended. “As per the Income Tax Act, employers should issue Form-16 to the employee before 15th June every year after the end of the Financial Year. For FY 20-21, CBDT has extended the due date to issue Form 16. New deadline for employer to issue Form 16 to employee is July 31, 2021,” informs Bangar.
The tax at source is already deducted by the employer before crediting the bank account of the employee with the monthly salary. Form 16 is a summary of the total amount paid and is basically the TDS certificate for the employee. Form 16 includes Income chargeable under the head ‘Salaries’, any other income reported by employee, the various deductions under Chapter VI-A such as section 80C, Section 80D etc.
But, what if someone wants to file the ITR for assessment year 2021-22 without having received the Form 16? “If the employer fails to provide form 16 to the employee and the employee wants to file his income tax return, then the taxpayer can use his monthly payslip for calculating his salary income for the financial year. Taxpayers can take all 12 months salary slip as the basis for the calculation of his Salary Income,” says Bangar.
Also, many taxpayers want to file ITR especially those who have TDS to show and no other income. “If your total income is less than basic exemption limit i.e. Rs 2.5 Lakh and TDS has been done, you shall file income tax return. Filing ITR will ensure receipt of refund of TDS done. Remember , for filing ITR, Form 16 is not mandatory. You can find your TDS details in 26AS. In the new income tax portal, TDS details are easily available on the dashboard,” informs Bangar.
And, when it comes to opting for the new tax regime or continuing with the old tax regime, your Form 16 will show the option chosen. This has been provided by bringing a change in the format of Form 16. “As per the notification only one change is notified in form 16 which is in Part B of Form 16. As per the new change, employers need to report whether the employee opted for the New Tax Regime,” informs Bangar.