For the salaried employee, a Form 16 is one of the dearest documents that they can receive. This single document makes life a breeze when it comes to filing income tax returns electronically and serves a multitude of purposes. Form 16 is often used even by Visa agencies to check whether or not the person has been paying their taxes.
The reason for their importance and multitude of uses is the fact that they act as a single source of information which encloses all relevant details such as salary earned, TDS, tax saving deductions, etc. and makes it easy to input the relevant details while filing the returns. The form 16 is to be provided by the employer but in certain cases an employer may not be able to generate this form. This doesn’t mean that one cannot file his or her returns; it just means that the process will be slightly more complicated than what it was.
Steps mentioned below need to be followed in order to file income tax returns electronically without a Form 16:
- Taxpayers should collect the payslips for the required period and calculate their taxable income. This includes previous employer’s payslips as well, if the taxpayer has changed jobs within the financial year.
- The TDS should be calculated from the pay slips and the taxpayer has to download their Form 26AS and check to see if the tax deducted by the employer matches the amount mentioned in the form. The form is available for download at the following website, https://incometaxindiaefiling.gov.in. Users will have to register or login and click on the corresponding link to download this form. If the TDS calculated and the value shown on Form 26AS do not coincide, employees must reach out to their employers and rectify the mistake immediately.
- Most employees have a component of HRA or housing rent allowance as part of their salary. If they are paying rent, then they must submit rent receipts to their employers.
- Employees should then claim any deductions. Certain insurance policies and interest paid towards loans such as education loans can be used to claim tax deductions. The documents for these deductions need to be provided as well. When making deductions for any PF contributions, the deductions claimed should only be for the employee’s contribution and not for the employer.
- Incomes from other sources need to be declared under the taxable income. Rent from any property owned by taxpayer or interest earned from fixed deposits are considered as extra income which needs to be accounted for. If the tax paid is less than what is mentioned in Form 26AS then the variance has to be paid online.
Upon completion of the above steps, one can successfully file their income tax returns online.