How to file income tax return without form 16

Form 16 is known as a salary TDS certificate. It’s issued by the employer to an employee for the whole financial year showing all the taxes deducted from salary and deposited with the government. Form 16 is the first and most important document that every salaried individual required to file an income tax return.

It’s mandatory for the employer to issue Form 16 to the employee on or before 31st May of the following financial year. For the financial year 2019-20, the due date of issuing form 16 to an employee is 31st May 2019. For the FY 2019-20, this date has been extended to 31st August 2020 due to the COVID-19 outbreak, which is one month from 31st July being the last date of filing TDS return.

However, there can be cases where you might not receive form 16 on or before the due date of filing return of income. In these types of cases, you have to file your tax return without salary TDS certificate Form 16 on or before the due date of filing in order to avoid late fees. In this article, we will discuss how to file your income tax return without form 16.

Compute income from salary

In the first step, you need to calculate income under the head salary with the help of your salary slips and offer letter received from the company including all the increments. Salary slip for the whole year will be the best document to calculate your income from salary.

While calculating you need to give effect to all the exemptions you are eligible and claimed from your salary income and deductions allowed under section 16.

If you are a new employee, then we suggest you collect payslip every month from your employer as it has all the details required to file your tax return including a break up of your total salary.

However, your salary slip may not have your HRA eligibility calculation. In this case, you can take the help of your salary break up from your offer letter and calculate the house rent allowance exemption on your own and add the taxable HRA to your gross salary.

Cross check form 26AS with the salary Slip

Form 26AS is an online statement provided by the income tax department. In this statement, you can see all tax credits to your permanent account number which includes tax deducted and deposited by your employer. You can view Form 26AS online from your income tax account.

In form 26AS, look for your employer name and TAN. Your employer might have filed 4 TDS return for each quarter showing tax deducted and deposited every month from your salary income.

In your salary slip, you might have a field for tax deducted from salary before calculating your net salary. You need to cross check form 26AS monthly TDS with salary slips to know if all the deductions for respective months are deposited in your account. In case of discrepancies, you need to contact your employer to rectify or deposit the deducted amount. If your employer did not listen to your request, then you can write to your employer’s assessing officer.

However, there can be cases where employees may not get form 16 from employer. For instance, if your total income is less than the basic exemption limit, then you may not get form 16 from employer as tax is not required to be deducted below this limit. Therefore, before taking the matter to assessing officer, you need to make sure that you are legally eligible to get form 16 from employer.

Compute other income and loss from house property

As a taxpayer, you must know that all other incomes under the head house property, capital gains and other sources are also taxable in addition to your salary income.

For instance, interest on bank savings, recurring and fixed deposits are taxable under the head income from other sources.

Similarly if you are receiving rental income from your house then it has to be included under the head income from house property. Housing loan interest can be claimed as a deduction before calculating income from house property.

In case of sale of shares, property and/or any other capital assets, you need to calculate your income under the head capital gain.

Add all the income under different four head that we have discussed to calculate gross total income before allowing tax deductions out of it. If you do not know how to calculate, then we suggest you to take the help of a practicing chartered accountant or advocate to help you out.

Claim tax deductions under chapter VI-A

Under chapter VI-A an individual is eligible for number of tax deductions based on different applicable provisions. Here is a list of few tax deductions that an individual can claim in his return of income based on eligibility;

  • Life insurance premium paid for self, spouse and children.
  • Contribution to public provident fund or PPF.
  • Contribution to employee provident fund or EPF.
  • Health insurance premium paid.
  • Medical expenses incurred for self, dependent for specified diseases.

Please note every deduction that we have discussed above has a limit up to which you can avail deduction from your gross total income.

After listing all eligible tax deductions, you need to deduct from your gross total income in order to find out taxable or total income.

Calculate your tax liability

Based on your total income, you need to calculate your tax liability. To calculate your tax liability you will be required to know the applicable tax rates based on your age. As you are working in a company, it’s quite obvious that normal tax rate that is applicable to an individual who is below 60 years of age will be applicable to you.

Here is the tax rate applicable to an individual who is below 60 years of age for FY 2018-19 and 2019-20:

Total Income slabsTax rates
0 – 2,50,000Nil
250001 – 5000005%
500001 – 100000020%
1000001 and above30%

After taking out tax rebate under section 87A as applicable to you, you need to charge surcharge on it to calculate final net tax payable.

From the tax liability calculated above, deduct the tax amount that has been deducted from your salary. If any tax needs to be paid by you in the financial year, then it has to be paid as self assessment tax using challan number 281 before filing return of income.

File your Income tax return

Now based on your other type of income in addition to salary, you are required to choose the income tax return form or ITR. In general, ITR-1 is applicable to salaried individuals. However, you might be required to use ITR-2 or ITR-3 based on other income you get in addition to salary income.

is a fellow member of the Institute of Chartered Accountants of India. He lives in Bhubaneswar, India. He writes about personal finance, income tax, goods and services tax (GST), company law and other topics on finance. Follow him on facebook or instagram or twitter.