Can you file ITR without Form 16?

Do you hold a regular salaried job? Check your payslip for a component known as tax deducted at source (TDS). This signals that your employer is deducting income tax from your salary throughout the financial year. It also means you will need to file your income tax return (ITR). To help you with this annual exercise, your employer will provide Form 16.

What is Form 16?

Form 16 is a certificate that employers provide to their salaried employees every year under Section 203 of the Income Tax Act. The document presents the TDS payments made against the employee’s PAN and deposited with the government. You get an overview of the salary income credited to the employee’s bank account and the TDS charged on the same.

Employers are required to issue Form 16 to salaried employees by 15 June of the financial year that immediately follows the year in which TDS was deducted. So, you have 45 days in hand to file your ITR by the 31 July deadline.

Contents of Form 16

Form 16 has a Part A and a Part B.

Part A contains:

• Name, address, PAN, and TAN of the employer
• PAN of the employee
• Summary of amount paid and TDS deducted against the employee’s PAN

Part B contains:

• Income from salary
• Salary components such as House Rent Allowance (HRA) and Leave Travel Allowance (LTA)
• Income tax deductions under Chapter VI-A of Income Tax Act (including Sections 80C, 80D, 80E, 80G, etc.)
• TDS
• Tax payable

Form 16 serves as a handy reference point for salaried individuals during the ITR filing process. It outlines your salary income details and TDS charged, and is a documentary proof of TDS paid.

What if Form 16 is not issued in time?

In some cases, employers may not issue Form 16 by the scheduled deadline of 15 June. This could be for several reasons:

• The employer’s business was shut down.
• You left the organisation without completing the exit formalities.
• There is a delay on the employer’s part.
• Your salary income is below the taxable level.

Whatever be the cause, if the deadline for ITR filing is near, you can proceed file ITR without Form 16. Here’s what you need to do:

• Use your payslips to compute your annual salary income. Factor in gross salary, exempt allowances under Section 10, standard deduction, professional tax, and other components. Keep in mind, for example, that some allowances are fully exempt while others are partly exempt.
• Include your own contribution to Provident Fund (PF) and claim applicable deductions under Chapter VI-A.
• If you have income from other sources, add the details on the ITR form. Gather the necessary documents for accurate computation. For instance, a capital gains report downloaded via your demat account will provide details of capital gains generated during the year.
• Check the income tax slab you fall under and compute your tax payable for the year.
• You already know the TDS paid by your employer to the government. Cross-check the amount against Form 26AS. You can download the form via the e-filing website.
• If there is further tax to be paid, make the payment to proceed with the ITR filing. Or, if you have paid excess tax during the year, complete the ITR filing to kickstart the refund issue process.

Final word

While filing ITR without Form 16 is possible, having the document makes things simpler. See if you can afford to wait for your employer to issue the document. It will streamline your tax computation process considerably.