Form 16 in Income Tax Return is that important document which contains complete information about the income tax payer. In this, there is a complete account of the income made by the income tax payer for the whole financial year and the tax deducted by the company.
Form 16 is issued by the employer to the employee under section 203 of the Income Tax Act. In Form 16, it is written that how much amount has been deducted as TDS and how much amount has been deposited. It also has two parts.
Income Tax Return: Form 16 is a basic document used by salaried employees while filing their Income Tax Return (ITR). It seems almost impossible for most of the salaried people to file ITR without Form 16.
But many times it has also been seen that it is time to file Income Tax Return and Form 16 has not been received from the office. It may also be because the employer is closing down its business or it may be that you have changed jobs without completing all the formalities.
If you do not have Form 16 and the time for filing ITR is nearing, then you can file your return without Form 16 as well.
Here is how salaried employees who do not have Form 16 can file their ITR-
Calculate Income from Salary
- First of all calculate the income from salary. For this, the help of your pay-slip (salary slips) can be taken. Pay slips received from wherever you have worked during the financial year will have to be kept safe. This year also, you have to give complete details of your salary income.
- In this, you will get gross salary (salary as per section 17(1), value of perquisite 17(2), amount of profit against salary 17(3), exemption under section 10, deduction under section 16, entertainment allowance (Govt. for employees), and business tax details.
- Your pay slips should contain the figures mentioned above. However, many companies do not provide the amount of ‘Value of Perquisites’ and ‘Profit against Salary’ in the salary slip.
- For this, you can ask your HR or finance department to provide Form-12BA. This form details the value of perquisites and the amount of benefits in lieu of salary paid to you by your employer.
- Apart from all this information, your salary slip shows the amount of all allowances paid to you, Provident Fund (PF), Tax Deducted at Source (TDS) etc.
- Use here allowances that help you reduce your tax liability like HRA, LTA etc. However, keep in mind while computing the allowances as some allowances are partially exempted and some are completely exempted.
- It is necessary to mention the amount of tax exempt allowances in the ITR. Also, don’t forget to claim standard deduction of Rs 50,000 under section 16(ia).
Reconcile TDS deducted with your Form 26AS Form 26AS
should contain the details of TDS deducted not only on your salary income but also on other income. It is important to cross-check your TDS with the figures shown in your Form 26AS as the figures may vary.
Compute Income from House Property
If you are getting any income from letting out the house property owned by you, you need to report the same under this head. Also, if you have taken a home loan on a let-out property or on a self-occupied property and are paying interest on the loan, you will get a deduction of the same under this head.
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