Income Tax Filing: How to file ITR without Form 16

Income Tax Filing: How to file ITR without Form 16 

Form 16 is a basic document that is used for filing the Income Tax Returns (ITR) for a salaried person. However, there are times when you might not get Form 16 for a particular year. There could be many reasons such as problems related to your employer, to the payroll department, switching jobs, or wrong credentials. Filing ITR without this crucial form seems impossible; however, even if form-16 is not available, there are several other documents that can be used to file your return. Let’s have a look! 

How to file ITR without Form-16? 

To file an Income Tax Return without Form-16 there would be a series of steps required to be followed, such as:  

Step 1: Calculate Income from Salary:  

Documents like salary slips or Form 12BA will be crucial for computing salary income. The documents can help you fetch important details like: 

Step 2: Calculate Income from House Property:  

If you are receiving any rental income or in case you have taken any home loan, then the same needs to be reported under the head Income from House Property.  

In case, the individual has taken a home loan and is paying interest on it, then deduction on the same shall be allowed to them u/s 24 of income tax. If the individual is earning rental income, then he can avail a deduction of 30% in addition to Municipal tax paid from the rental income. 

Form ITR-1 can be used to report income from single (one) house property only. In case of possessing more than one house property, ITR 2 or 3 shall be furnished.  

Step 3: Compute Income from Capital Gains: 

In case you have sold shares or properties then gain/loss derived from such transaction shall be disclosed under the head ‘Income from Capital Gains.’  

The gains from sales of equities or equity-oriented mutual funds are exempted up to Rs. 1 lakh if the securities are held for more than a year. Information about these incomes can be obtained either from consolidated share trading statements or broker statements or contact notes.  

In the case of the sale of property, the deeds will serve as a source of information to compute accurate purchase and sale prices. So, it will be advisable to keep all the sale deeds ready for current tax calculations.  

ITR-2 or ITR-3 needs to be furnished in case of capital gains. You cannot use ITR-1 or ITR-4 to report incomes under this head. 

Additional Read: Understanding the Basics of Income Tax for Beginners 

Step 4: Computing Income from other sources 

Income that can’t be categorised in any of the above-mentioned heads is reported under Income from Other Sources. It generally includes income like interest from various bank deposits, fixed deposits, interest on income tax refund, winnings from lotteries, gifts etc. To know the quantum of such income one can easily refer to banks statements or Form 26AS. Regardless of whether they are taxable or exempt, it is essential to report the income from other sources. Not reporting it can lead to future enquiries by the income tax department.  

The selection of the ITR form shall depend on the main source of income. Generally, Form ITR-1 can be used to report income in this category. 

Step 5: Match TDS with Form 26AS 

After computing taxable income under all the heads of income now you need to match your TDS (Tax Deduction at Source) with Form 26AS. 

Form 26AS contains the details of TDS deducted against all incomes traceable on your PAN card during a particular assessment year. The income may or may not be from salary.  

It is very important to cross-check the TDS amount with the amount mentioned in Form 26AS, to figure out any discrepancies if they exist. If any discrepancy is found then the person needs to get in touch with the deductor or employer, as the case may be. 

Step 6: Calculate Total Deductions to be claimed 

Make a list of all tax-saving investments made during the financial year. You can check the details from ECS deducted, PPF passbook, Mutual Fund Statements, insurance policy documents, investment certificates, loan repayment schedule, etc. 

Step 7: Compute total taxable income and pay the excess amount or claim the Refund: 

The total taxable income will be the final figure that has been obtained after subtracting the deductions from the total income from various sources. 

Next in the series is to determine the income tax liability on such total taxable income. If the final calculation turns out to be payment of additional taxes then make such due payments. In case, taxes are already deducted more than the tax due, claim the refund of excess tax paid. 

Step 8: File and Submit ITR 

Once the payment of outstanding taxes is made, the last step involves preparing and submitting your return with the Income Tax Department. Further, don’t forget to e-verify it within 120 days of filing. 

Additional Read: 7 best tax saving options available for you 

A Rundown of the Documents Required in absence of Form 16 for filing ITR 

In addition to this, all the deductions documents such as home loan repayment, NPS contribution, and PPF contribution are also needed.