Don't have Form 16? Here's expert advice on how to file tax returns

Monthly salary slips of a financial year, annual income statements and Form 26AS among documents that can be used

As the July 31 deadline to file Income Tax return (ITR) approaches, some salaried employees face a challenge: what to do if they haven’t got their Form 16? Form 16 simplifies the process of filing returns but it is possible to do that if you have other relevant documents.

 

What is form 16?

 

According to the Central Board of Direct Taxes (CBDT), “Form 16 is a certificate issued by an employer to its salaried employee, providing details of the total salary paid and the tax deducted at source (TDS) on the employee’s behalf during the financial year.” It is generated after the employer files quarterly TDS returns and is matched with the employee’s PAN-based tax credit details in Form 26AS and the Annual Information Statement (AIS).

 

What to do without Form 16

 

“Form 16 is derived based on the quarterly filings done by the employer, reconciled with the information in Form 26AS and the AIS. Hence, it is ideal that salaried individuals file tax returns only after receiving Form 16,” said Aarti Raote, partner at  Deloitte.

 

But if the document is delayed or not issued, Raote advises individuals to use the following:

 

• Monthly salary slips of a financial year 
• Year-end tax computation from the employer (if available) 
• Forms 26AS and AIS from the income tax portal 
• Details of any exemptions or perquisites received

 

How to calculate income and tax liability

 

Using the above documents, the taxpayer should:

 

• Add up the annual salary and taxable allowances 
• Deduct eligible exemptions (HRA, standard deduction, etc.) 
• Reconcile salary credits with bank account statements 
• Calculate total taxable income and tax due

 

“It is also ideal to reconcile the net pay with the bank statements to ensure no income is missed,” says Raote. 

 

How to verify TDS without Form 16

 

Form 26AS and AIS, available at Income Tax’s portal, can help verify whether the employer has deposited TDS correctly. These statements are PAN-linked and reflect all tax credits and income reported.

 

Avoid these mistakes

 

One of the biggest risks when filing without Form 16 is under-reporting income. “Without Form 16, the calculation of taxes is very difficult as individuals may miss some income or perquisites provided by the employer,” says Raote.

 

To avoid errors:

 

• Match salary figures with bank deposits 
• Cross-check TDS entries in Form 26AS and AIS 
• Double-check exemptions and deductions claimed

 

By being methodical and verifying all sources of income and tax credits, individuals can file their returns without Form 16.