How to file return without a Form 16?

For a salaried individual, Form 16 is very important for filing an Income-tax return.

What is Form 16?

In simple words, Form 16 is a TDS certificate that gives all information about salary, tax liability and the tax deducted at source (TDS) from income chargeable under the head “salaries”.

It may happen that the employer is unable to issue Form 16 on time or has not issued Form 16 at all. Income-tax returns can still be filed easily from myITreturn. Following the steps given below and file your return easily without your form 16:-

Step 1: Calculate Gross salary

As you have not received form 16, you will have to derive the figure of salary received. Please compile all the details of Gross Salary, Other Allowances paid to you, etc from your monthly salary slips or in case salary slips are also not available you can get the exact amount of salary received from your bank statements, add up the amount of salary credited in every month for the relevant period (Financial Year). Remember, gross salary should be calculated for reporting it in ITR. The amount of salary credited shall be inclusive of various allowances provided by the employer, many of which are exempt.

Step 2: Calculate and claim Exemption on Allowances 

The income-tax department allows you to deduct the exempt allowances from salary to arrive at the figure of taxable salary. Click here to know about allowances and their taxability. Accordingly, please calculate your allowance and exemptions. You should reduce it from your Gross Salary.

Step 3: Deduct Professional Tax Paid 

Reduce the amount of professional tax paid by you. You may get it from salary slips if paid by your employer after deducting it from your salary. After reducing the same, you will get an amount of taxable salary.

Step 4: Compute income from House Property

In case you are in receipt of any rental income from house property or you are owning a property on which a housing loan is taken and interest is payable on same, you need to disclose the same in your Income-tax return. You can avail of the following deductions in case you have taken any housing loan.

1. Interest - For self-occupied property, the maximum interest of Rs. 2,00,000/- is deductible. For let out property, the entire interest on the home loan is allowed as a deduction.
2. Principal repayment - Principal amount repaid on housing loan is allowed as deduction u/s 80C.(Maximum limit 1,50,000/- for all deductions u/s 80C).
3. Stamp Duty and Registration Fees - Stamp Duty and registration fees paid while buying the property is allowed as deduction u/s 80C (maximum limit 1,50,000/- for all deductions u/s 80C).

The net figure has to be reported as income from house property. You can claim 30 per cent as a standard deduction in case of rental income and you are also allowed to deduct municipal tax amount on your name with respect to the property for which the rent is received.

Step 5: Compute capital gain income 

In case you have sold any capital asset, you will have to declare capital gain on the same, in the year in which are have made such a sale. Capital gains are computed automatically while filing returns through myITreturn, so you need not worry about the complexities of the same.

Step 6: Declare Income from other sources

Any income not included in any of the above steps is to be included under other sources. Any interest income, gift or winnings are to be declared under this head. The amount of interest earned on a saving bank account is also required to be declared in the Income-tax Return. Deduction u/s 80TTA is allowed to the extent of Rs 10,000/-on interest from the savings account. FY 2018-19 has introduced a new section 80TTB for senior citizens where deduction up to Rs 50,000/- is available on the interest income from any kind of deposit in banks and post offices.

Step 7: Claim your deductions  

After you have disclosed all your income, lastly, claim the tax benefits on LIC, mediclaim, investments made in post office savings scheme, NPS, pension funds, PPF, donations, etc. Make sure you 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 house rent paid u/s 80GG. You just need to submit your rent receipts to your employer. Click here to know more about HRA and 80GG.

Step 8: Claim Taxes / TDS paid 

Once all Income and deduction details are entered, you are required to claim TDS other than Salary(TDS on Salary is asked at the time of Salary details itself) and taxes if paid separately. You can get these 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 you see any discrepancy in the TDS amount actually deducted and the amount that is supposed to be deducted, contact your employer immediately and ask them to rectify the error.

Step 9: Payment of balance tax dues, if any 

After that, check the figure of tax payable, if any, in your income tax computation. If you have paid fewer taxes, you were supposed to pay, make the payment of the same. 

Step 10: File your return 

Lastly, file your return and e-verify the same or sign it and send it to CPC, Bangalore.

You see, it's easy to file your return, even without form 16. If you have any queries or want help to file your income tax return you can consult our tax experts at myITreturn.com!