Filing the Tax Returns Electronically Without the Use of a Form 16

There is an option to file income tax returns electronically without using of a Form 16. Individuals can calculate the taxable income by collecting the required payslips. Individuals should also list other income sources and pay the required taxes.

It is that time of the year again where everyone is busy getting their finances in order and running from pillar to post acquiring the required forms to file their tax returns. Any model citizen who pays their taxes will mention that it is a cumbersome process. But there are ways to make life easier especially towards the end of a financial year. One can file their tax returns electronically without the use of a form 16. The information given below will shed light on how to file the e-returns

Conventionally, while filing the returns, the salaried individual has to obtain the form 16 from their respective employers. The employers are obligated to perform this task and one can always reach out to their employers for the form 16. But there a few instances when the employer will not provide this. In such cases, one can file the returns themselves electronically. The form 16 in actuality is just a TDS certificate that gives you details of the taxable income and the tax deducted at the source. Without this form, the individual will have to calculate these by themselves. This can be done by collecting the payslips to calculate taxable income. Then the individual needs to claim their deductions such as HRA if they are residing in a rented residence. They have to list other sources of income if any, pay additional taxes if applicable and file their returns.

To Explain this in Detail, Read the Instructions below

  • Collecting Payslips: The individual should collect all the required salary slips received from the employer for the financial year. If the individual has switched jobs one or more times in the same financial year, then they should include payslips from all the previous jobs or employers received in that financial year as well.
  • Calculating TDS: The individual has to then calculate the TDS deducted by the employer across the financial year and ensure it matches the amount mentioned in the individual’s form 26AS. This form can be found at the following government website. The individual can login after registering, enter their PAN details and follow the necessary navigations upon which the individual can view their tax credit statement. One should verify TDS deducted by the employer matches that which is shown in the Form 26AS and any errors or mismatches should be rectified by contacting the employer.
  • Rent receipts: Almost all employers provide their employees with a component of salary known as HRA which stands for House Rent Allowance. It is especially helpful for those employees who reside in rented houses. To claim this deduction in tax, the employees need to submit their rent receipts to the payroll department of the employer in advance. If these have not been submitted, the individual can claim it while filing.
  • Claiming the Deductions: A large number of investments have always been sold with the added advantage of providing tax deductions. This is where those benefits kick in. employees who have availed investments can claim deductions under various sections depending on the type of investment availed. For example, tax deductions can be claimed under section 80C for investments such as life insurance, a public provident fund or even an employee provident fund whereas other investments such as medical insurance premiums fall under section 80D and interest paid on education loans fall under section 80E. An important note to bear in mind is that when claiming deductions for a provident fund, only the employee’s contribution is to be claimed for and not the contribution made by the employer.
  • Other Income: Income earned from other sources such as another salaried job, a part time business venture, rent earned from property and even interest earned from fixed deposits should be mentioned under the taxable income.
  • Paying the Differences: At any point, if the total tax payable in the respective financial year amounts to a value that is lesser than what is actually payable should be paid up given there are no errors from an employer’s side. The variance can be paid online.
  • Filing the Returns: After ensuring the variance has been paid and that everything matches as per details displayed in Form 26AS, one can file their taxes online.

The above method is especially useful if for some reason an employer doesn’t provide a form 16 to the employee.

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