File income tax return without Form 16 — follow these 8 steps

Don’t have Form 16 to file your income tax return? No worries. We will help you to file income tax return without Form 16. Read this…

Due to several reasons many of the employers do not provide Form 16 to their employees. One of the major reasons might be that their total income is less than the exemption limit. But, there are instances where the employee does not receive Form 16 even though their income is more than the exemption limit. It becomes difficult to file their Income Tax Return without Form 16.

If you are one of them. Fear not. Here’s the 8 simple step for taxpayers to file their income tax return without Form 16:-

Step 1: Compute your salary income

heads of income @ www.lightlybrowse.comFirst step towards filing of income tax return without Form 16 is to collect all your monthly salary slips and compute the total salary for the year. If some of them are missing then you can also verify the amount with the amount credited in your bank statements. You must be careful here. You are required to note that the salary that you receive is after deducting the tax at source, Provident Fund, pension fund, etc. but, you should not consider the net figure.

Gross salary should be calculated for reporting it in ITR. The employer’s contribution to PF must not be clubbed while calculating the salary in this step as it is exempt under Section 10(11).

An employee receives many types of allowances in his salary while some allowances such as conveyance allowance, medical allowance, HRA, etc. are some of which are exempt from income tax while dearness allowance is completely taxable. Hence, the Income Tax Department allows you to deduct the exempt allowances from salary to arrive at the figure of taxable salary.

Please note, in case of HRA, lower of the following is exempted and the remaining is taxable:

  • Actual HRA received
  • 40% of basic salary
  • Rent paid: 10% of basic salary

The amount that you received after deducting exempted allowances is your taxable salary. This figure must be reported in your IT return as income under the head salary.

Step 2: Income from house property

If you are the owner of any house property and if it is let out, then the rent received must be reported in your ITR and it is your income from house property. Similarly, if you are paying any interest on housing loan, then you can adjust it in your house property income of that assessment year as per the procedures of IT law. The net figure of income from house property has to be reported as income from house property. Here you may note that you can claim 30% as the standard deduction in case of rental income and you are also allowed to deduct municipal tax amount on your name with respect to property for which the rent is received.

Step 3: Compute your income from other sources

Income from other sources includes interest on bank deposits, RDs, FDs, income received as gift, commission, etc. You may refer your passbook and Form 16A (if any) for information about the sources of income (if any). Aggregate all the other sources of income and report it under the head income from other sources while filing your ITR.

Step 4: Calculate capital gains

If you have made any money from capital gains from the sale of mutual funds, shares, flat, land, etc. then it must be surely reported. In case of profit from the sale of shares, you can get the profit and loss statement from your broker and based on that, you can report short term and long term capital gains or loss.

Step 5: Claim tax benefits

Now, it’s time for the sweetest part and claim the tax benefits which are available under various sections especially Section 80. You may claim investments made under LIC, tuition fees, NSC, PPF, and repayment of principal of housing loan under section 80C. Donations you may have made to charitable institutions can be claimed under section 80G, and payment made towards premium of medical insurance policy can be claimed in section 80D. Compile all these pieces of information of tax saving investments diligently, so that you don’t miss out on any chance of tax benefits.

After compiling all these tax benefits, report them under proper heads in ITR.

Step 6: Calculate income tax

Now you sum up all the income calculated in steps 1 through 4 and subtract the deductions as listed in step 5.  The resultant computation will be taxable income. Now, calculate income tax on this taxable income using the IT slab rates for the financial year 2016-17.

Step 7: Claim credits for TDS and advance tax and check Form 26AS

Form 26AS is the tax credit statement. It shows all the income tax deposited by you or on your behalf to the IT Department. As you have not received Form 16 from your employer, you are required to carefully verify Form 26AS to know about the TAN and TDS deducted by your Employer (if any). If there is any kind of mismatch in the details in Form 26AS and the details of all the TDS certificates issued to you by your employer or bank, you might have to face a difficult time to get your tax refund. In such a scenario, without wasting any further time, you should immediately contact your tax deductor to rectify the same. As failing to take corrective actions will disqualify you of any tax credits.

While filing the IT Return, it is mandatory to specify the TAN and TDS deducted by the deductor. For advance tax, challan serial number, BSR number of the bank, date, amount, etc. is mandatory. If you get any tax liability notice, you will end up paying the shortfall amount and if there is a refund due, you will receive refund amount directly to your bank account.

Step 8: E-file ITR

Now all your computations are complete and you are all set for filing income tax return without Form 16. Please either visit the e-filing HomePage, Government of India, Income Tax Department or any other third party online tax filing sites which may assist in e-filing of IR. Please remember, the government site is free and the other online sites are chargeable.

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