How to efile Income Tax Return without Form 16?
Almost, all of us would agree to the fact that we have to know the basics about how to do filing of income tax returns. If you are employee, to file tax returns, you need form-16. However, there are several cases where Form-16 would not be available. In such case, one would face a big challenge in doing efiling of income tax returns. How to efile Income Tax Return without Form 16? How to compute net taxable income before efiling income tax returns in the absence of Form-16?
What is Form-16?
Form 16 is a certificate, in which the employer certifies the details regarding the salary you have earned during the year and the TDS that has been deducted. In other words, Form 16 is your salary TDS certificate. If your salary income is more than the exemption limit of Rs.250,000 for the financial year, under the income tax act, your employer is required to deduct TDS on your salary and deposit it to the government month on month. If you have also disclosed your income from other heads, the company will take into consideration your total income for TDS deduction. If your income is below the exemption limit, your TDS will not be deducted and he may not issue you the form 16.
In order to file income tax for a salaried individual, he/she has to obtain a form named Form 16. It is the form that is provided by each employer to his employee. It is the obligation of the employer to provide this form to all his employees. But, in a few circumstances, the employer may not be able to provide you with form 16. That does not mean that you will not be able to file your income tax return. You can calculate these things by yourself.
How to efile Income Tax Return without Form 16
Here are some steps which you need to consider on how to File Income Tax Return without Form 16.
Collect all your pay slips to compute gross income
Collect all the payslips provided by the employers during the financial year and calculate your total net salary. If you have worked for more than one employer in a financial year, don’t forget to put together all the payments received which are indicated in payslips.
Know how much tax deducted is deducted
You need to download Form 26AS from income tax website. Visit http://incometaxindiaefiling.gov.in/ Check for Form 26AS link, provide login details and download the form.
Check the tax that has been deducted at source from your payslips and match it with the form 26AS. If you find any discrepancy, contact your employer immediately and get the error rectified.
Claim House Rent Allowance (HRA)
HRA constitutes one of the important components of many of the employees. To claim the HRA deduction, you need to submit your rent slips to the payroll department, well in advance. But, if you haven’t submitted the rent receipts, you can claim it while filing. You should know how much HRA you are eligible as it depends on a few parameters.
Claim your deductions
- If you have made any investments / insurance / education loan which are eligible u/s 80C, 80D and 80E during the financial year, you can claim their deductions.
- Keep all your investment documents in hand and compute the amount eligible for deductions like life insurance, public provident fund, employee provident fund (80C), medical insurance premium (80D) etc. While calculating your claim for provident fund, be careful that you add only your contribution to the PF and not the employer’s contribution. The maximum eligible u/s 80C is Rs 1,50,000.
- Medical insurance premium for your family (Max Rs 15,000) and for parents of < 60 years (Max 15,000) totaling to Rs 35,000 can be claimed through 80D. If parents are crossed 60 years, one can claim upto Rs 20,000 as a medical insurance premium benefit. One need to retain all bills pertaining to the premium payments made.
- If you have housing loan, you can consider housing loan interest benefit for a financial year for a maximum of Rs 2 Lakhs (Self occupied).
Income from other sources
If you have income from other sources also other from salary, include it under taxable income. The examples of such income may be savings bank interest (excess of Rs 10,000 per annum), fixed deposit interest, rent from let out property, etc.
Compute your net taxable income
Net taxable income = Gross income (Salary + other income) – Basic deduction – all deductions (80C, 80D etc.,). There are several ways where you can claim maximum deductions from your income to pay less tax before computing net taxable income.
Pay an additional tax if necessary
Calculate your total tax liability (based on income tax bracket) and if the tax liability is higher than what you have already paid according to form 26AS, pay the variance online. Visit https://onlineservices.tin.egov-nsdl.com/etaxnew/tdsnontds.jsp and use Challan no.280 to pay balance income tax due. Ensure you select income tax other than companies option and enter accurate PAN no while making payment.
Finally, file your income tax return
Once you are assured that the taxes paid by you matches the tax payable, proceed to file your return online.
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How to efile Income Tax Return without Form 16