How Salaried Employees Can File ITR Without Form 16 For AY 2023-24?

When it comes to submitting ITR for salaried individuals, Form 16 can be essential. The employer's Form 16 (Part A and Part B) includes information on taxes deducted from compensation and the calculation of total income. Form 16 is the most important document for each salaried employee since it contains all relevant information, including a breakdown of their salary. It is a tax deducted at source (TDS) certificate that is handed out on behalf of employees who receive salary after having taxes withheld by their employer. Even if Form 16 is not provided, a person may still submit an income tax return (ITR). According to different tax experts, here's how salaried employees can file ITR without Form 16 for AY 2023-24.

Swati Jain, CA & Strategic Business Advisor, Arihant Capital Markets Ltd

Form 16 simplifies the process of filing Income Tax Returns (ITR) for salaried employees by providing details of income and tax deductions made by the employer.

However, it is still possible to file ITR without Form 16 by utilising Payslips, which contain salary details, and Form 26AS, which provides information on tax deducted at source (TDS).

Here is simplified step-by-step guide for you to file your ITR without Form 16:

Step 1: Gather salary slips

Collect all your salary slips or payslips from the relevant financial year. These slips should contain detailed information about your salary, allowances, deductions, and other income components.

Step 2: Calculate taxable income

Use the information from the salary slips to calculate your taxable income. Consider all components of your salary, such as basic salary, allowances, perquisites, bonuses, etc.

Subtract relevant deductions like house rent allowance (HRA), standard deduction, and professional tax, etc... to arrive at the taxable income.

Step 3: Include additional income

Review your bank statements to identify any additional sources of income beyond your salary, such as interest income, dividends, or any other income. Make sure to include these amounts in your taxable income calculation.

Step 4: Verify Form 26AS

Access Form 26AS through the Income Tax Department website and verify it. Form 26AS provides a consolidated statement of all taxes deducted and deposited against your PAN.

Ensure that the TDS details mentioned in Form 26AS match your calculated income details. If any discrepancies are found, contact the deductor (employer or bank) to rectify the inconsistencies.

Step 5: File the ITR

Once you have completed the above steps and gathered the necessary supporting documents, file your income tax return.

Remember to e-verify your return, as an ITR filed without e-verification is considered incomplete and won't be processed by the income tax department.

By following these simplified steps, you can successfully file your ITR without relying on Form 16.

The deadline for filing the Income Tax Return (ITR) for the financial year 2022-23 (Assessment Year 2023-24) is 31st July 2023.

Avinash Shekhar, CEO and Founder, TaxNodes

Form-16 holds significant importance for individuals earning a salary, as it provides crucial details regarding tax deducted at source by the employer throughout the financial year. It offers a comprehensive breakdown of the salary components, encompassing income from salary, such as dearness allowance and house rent allowance, alongside income tax deductions under chapter VI-A that the employee has availed.

Filing your income tax return without Form-16 may seem daunting, but with the right approach, it's manageable. Begin by gathering your salary slips and other supporting documents like Form 26AS, rent receipts, and proof of investments. It is pertinent to note that the employee can also download Form 26AS from the Income Tax e-filing portal which contains the details of TDS deducted and deposited against their PAN. This can serve as proof of TDS deducted and deposited.

In addition to this, calculate your total income by considering all sources, ensuring to include income from multiple employers if applicable. Verify the TDS deducted with Form 26AS, and claim deductions under relevant sections like 80C, 80D, and 80G. Deduct the available deductions from your total income to arrive at the net taxable income, calculate the tax liability, and pay the tax. Finally, file your ITR before the due date to claim any TDS refund. Remember, with meticulous organisation and attention to detail, you can successfully file your ITR even in the absence of Form-16. For precise compliance and personalised guidance, taxpayers can also seek assistance from platforms like TaxNodes, which help individuals accurately file their income tax returns while adhering to the tax regulations in their respective jurisdictions.

Ashish Misra, COO- retail banking at Fincare SFB

There are a few measures you can take to file your income tax return (ITR) as a salaried individual without Form 16. First, gather your salary slips, which provide details of your income, allowances, and deductions, from your employer. Second, calculate your total salary income by adding up the amounts from all your salary slips. If you have additional sources of income, include those as well. Third, identify deductions and exemptions such as those allowed by sections 80C and 80D or those relating to HRA or LTA, applicable to you. To determine your taxable income, compute the deductions from overall income.

Finally, calculate your income tax slab rates to determine your tax liability. Besides, if you have any pending taxes after accounting for tax deducted at source or advance tax payments, make the necessary payment before filing your ITR. Provide accurate information about your income, deductions, and taxes paid when filing your ITR online through the income tax e-filing system. Use the available options such as EVC or Aadhaar OTP, to verify and submit your ITR. Remember to keep a copy of the submitted ITR and any accompanying paperwork for your records. If you require specific guidance, consult a CA or a Tax professional.

Armaan Joshi, Financial Expert and Lead Editor, Forbes Advisor India

Form 16 can be crucial to file ITR when we consider the tax filing of salaried individuals. However, it is now possible to file ITR without Form 16 by the use of a Form called Form 26 AS. To file ITR without Form 16, you will need to get together all your salary slips and evaluate them to find your total taxable income. All allowances and deductions including contribution to provident fund must be considered to determine the taxable income. Income from other sources such as interest income from other bank accounts, capital gains from market-linked instruments and dividends need to be factored in the taxable income to derive the final income figure that is taxable for you. Verify your taxable income along with deductions with a form issued by the Income Tax Department called Form 26AS. You can finally file the ITR once the verification is complete.

Dr. Suresh Surana, Founder, RSM India

It is to be noted that even in case that an employer has not furnished any Form 16 to his employee or salaried individual, it would not absolve the employee from furnishing his tax return and as such the employee would still be responsible for filing his income tax return on or before the due date with or without Form 16.

In such cases where the salaried individual is not in possession of Form 16, he may rely on other documents such as payslips, Form 26AS, Annual Information Statement (AIS), Tax Information Summary (TIS), etc. for the purpose of computing tax and filing his tax return. Any other transaction details may be determined from the relevant financial documents such as bank interest details can be taken from bank statements, any capital gains on shares can be taken from demat statements, etc.

Further, in case the employer furnishes Form 16 after the employee has furnished his tax return and there exists any discrepancy in the Form 16 and the tax return, the employee has an option to file a revised return before 31 December after the end of such financial year. The filing of revised tax return may entail recomputation of income and any resulting refund / payment of taxes, subject to any late filing fees, if applicable.

Suman Bannerjee, CIO, Hedonova

Determine your income tax slab based on your income.

Consolidate all pay slips and calculate your taxable income.

Obtain the 26AS form to check any tax deducted at source (TDS) or tax collected at source (TCS).

Collect salary slips and gather proof of House Rent Allowance (HRA) and Leave Travel Allowance (LTA).

Gather proof of investments eligible for deductions under sections like 80C, 80D, and 80E.

If the tax liability exceeds the amount in the 26AS form, pay the additional tax before filing.

Download the 26AS form from the income tax e-filing portal.

Log in to the e-filing portal and click on "My Account."

Select "View Form 26AS (Tax Credit)" and agree to the usage acceptance.

Choose the assessment year and view type, then click "View/Download."

Anita Basrur - Partner, Direct Tax - Sudit K Parekh & Co. LLP

Information regarding taxes withheld from salary and computation of total income is provided in Form 16 (Part A and Part B) which is issued by the employer. If no Form 16 has been issued by the employer then it could be possible that the employee has income below threshold limit chargeable to tax. Even then the employee can still file his return by relying on various documents such as: Salary slips issued by the company for the entire year, actual salary credited in the bank statement. The employee can then reconcile the said information with Form 26AS and AIS statement available on the income-tax portal. Further, the employee will also be required to prepare a bank summary to check if he has earned income from renting of property, from transactions in equity market/ mutual funds or other sources. This will help in ensuring that all the income earned during the financial year has been considered by him while preparing return of income. In addition to the above, the employee can also, based on the computation prepared by him, evaluate whether the old regime will be beneficial or the new regime will be beneficial and accordingly, file the return of income.

S. Ravi Promoter & Managing Partner, Ravi Rajan & Co. LLP

Although form 16 is an important document to file ITR, but all salaried employees irrespective of whether they receive form 16 or not can file their Income Tax Return by following simple steps as follows: -

1) With the help of a salary slip or bank statement, total salary income can be calculated.

2) And by reviewing AIS salary as well as any other source of income also need to be verified & considered for ITR filing purpose.

3) TDS deducted if any can be checked from Form 26AS available on Income Tax portal and from AIS (Annual Information System) appearing on Income tax portal, or deduction details mentioned in the salary slip.

4) Identify their deductions such as LIC, Tuition fee, Principal repayment of housing loan, EPF, NPS, Interest on housing loan, HRA etc. to get relief from the total taxable income.

5) Finally calculate Net Taxable Income, & determine tax payable or refundable if any

6) At the end submit ITR by enabling aadhar E- Verification option

CMA Sanjay Kumar Garg, Cost & Management Accountant

Yes, it is indeed possible for a salaried person to file an income tax return without relying on Form 16. Form 16 is a certificate issued by employers, containing details of the salary paid and the tax deducted at source (TDS) on that salary. However, even in the absence of Form 16, individuals can file their returns using alternative sources of information.

The Transaction Information Summary (TIS) is a statement provided by the Income Tax Department, accessible through their website. This summary offers a comprehensive view of various transactions, including salary income and other sources of income. By referring to the TIS, individuals can gather the necessary information about their income and taxes paid throughout the financial year.

In addition to the TIS, individuals can also rely on the Annual Information Summary (AIS) and Form 26AS, which are available on the Income Tax Department's portal. The AIS provides a consolidated summary of financial transactions reported to the Income Tax Department, such as interest income and dividends. Form 26AS, on the other hand, serves as a comprehensive statement of TDS, reflecting the tax credits available to the taxpayer based on information provided by deductors (employers, banks, etc.).

For those individuals whose TDS has not been deducted, they can obtain the necessary information from their bank accounts. Banks typically provide account statements that detail the credits and debits made during a specific period. By carefully analyzing these statements, individuals can determine their income from various sources and accurately calculate their tax liability.

It is important to note that although Form 16 simplifies the process by providing a consolidated view of salary income and TDS, it is not mandatory for filing an income tax return. Taxpayers can gather the requisite information from the alternative sources mentioned above and accurately report their income while filing their returns.

CA Abhinit Singh, Founder, Ready Accountant

For every salaried employee, Form 16 is the most vital document because it provides all pertinent information, including the breakdown of salary income. It is a certificate of tax deducted at source (TDS) that is given on behalf of employees who receive a salary after their employer deducts taxes from their pay.

An individual can still file an income tax return (ITR) even if they are not given a Form 16.

A person should verify under which tax bracket, based on their income, they fall under. It is suggested that one combine all pay stubs and determine their taxable income. Utilise the 26AS form to determine the precise tax that must be paid. The 26AS form details any money taken out of a taxpayer's numerous sources of income as TDS or TCS. It includes information on the taxpayer's high-value transactions as well as advance tax and self-assessment tax facts. AIS (Annual Information Statement) is also available on income tax portal which carries all information related to TDS, TDS, Income received, purchase and sale of shares and mutual funds, interest on FD and saving accounts etc.

Adding to this the last date to file the ITR for income earned in FY 2022-2023 will be July 31 for non audit cases.

Ashutosh Goyal Founder and CEO of Flipshope

Filing your income tax without Form 16 can be a hectic task, but when you know the right approach, everything seems easy. Overcome this challenge and file your ITR without Form 16 only with a little extra effort. This quote will inspire you to fulfill your obligations as a taxpayer even if you don't have your Form 16 with you due to some reasons.

You have the chance to demonstrate your resourcefulness and take charge of your financial future if Form 16 is not available. Use your bank statements, salary slips, and other relevant documents as a weapon and navigate the ship of your tax filing according to your route.

Though filing of ITR without Form 16 requires extra effort, but it also gives you a chance to dive deeper into your financial assets and educate yourself about the provisions and guidelines provided by the tax authority of the country. Seek assistance from reliable sources or tax professionals and embark on the journey of a smooth income tax return filing.

Using your salary slips and having a detailed report of your income receipts along with HRA can be quite helpful in the process. Having your form 26A works best in this regard. Countless individuals have successfully filed their ITR without Form 16, and you can too.

Embrace this opportunity and equip yourself with knowledge about your financial status. By taking charge of your ITR filing without Form 16, you are not just meeting your obligations but also empowering yourself on your journey towards financial well-being. However, taking help from professionals if you can is always a safer option in this regard.

Disclaimer

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