How to file ITR without Form 16 for FY 2023-24 (AY 2024-25)?

What is Form 16?

Form 16 is a certificate issued under section 203 of the Income Tax Act, 1961, to salaried employees by their employers. It contains details of the salary paid to the employee, the tax deducted at source (TDS) on the salary, and deposited with the government by the employer.

Form 16 serves as proof of tax deducted at source (TDS) from an employee's salary by their employer. It helps employees assess their tax liability and file their income tax returns (ITR). It is a crucial document for salaried individuals, containing important details about their salary income, tax deductions, and taxes paid during a financial year.

Who issues Form 16?

Employers are required to issue Form 16 to their employees by a specified deadline. As per the provisions of the Income Tax Act, an employer is required to furnish a certificate in the format of Form 16 to their employees. This certificate specifies the tax deducted at source (TDS) by the employer, the amount of tax paid to the Central Government, the quarter for which the tax has been paid, and other prescribed details.

If an employer fails to provide Form 16 to their employees after deducting TDS, there are consequences for such non-compliance. The penalty for this failure is a minimum of Rs 100 per day for each day the default continues until the form is furnished to the employee. The penalty amount can vary based on the discretion of the Assessing Officer.

The deadline to issue Form 16 for FY 2023-24 (AY 2024-25) is 15 June 2024.

What are the cases when the employer does not issue Form 16?

Following are the cases when there is a chance you won’t get Form 16 from the employer:-

• If the employer has not deducted any TDS from your salary for the financial year, they are not necessarily required to issue Form 16, but it is observed that most employers do so for all their employees to ensure that no one is left out.
• Shut down of the business by the employer because of any financial crisis.
• Termination from a job before the time mentioned in the bond or job change without completing the exit formalities.

What is the alternative to Form 16?

How to file ITR without Form 16?

Though Form 16 makes it easier to file tax return for salaried taxpayers, ITR filing is possible even without Form 16. Continue without Form 16 here.

In case, Form 16 is not available on time, you can follow these 7 steps to file ITR

Collect your Pay Slip

Form 16 has all the details pertaining to your taxable income. The same can be extracted through a pay slip received from your employer. So, just in case your Form 16 is not available, the breakup of salary and particulars of taxable income can be taken from your periodic pay slip.

Make use of 26AS

Form 26AS can let you know TDS deducted from all your incomes during the particular year, including your salary income. Studying your 26AS in detail will help you in twin ways,

1. It will reflect your TDS deducted on salary income and
2. If you have earned any other sources of income during the year on which TDS has been deducted. You can know about it and disclose it while filing an ITR.

Calculate your Deductions

You might have made some expenditures and investments which can reduce your total taxable income. Such outflows include money paid for rent, donations, or eligible deductions under section 80C – LIC, PPF, etc. Calculate all such deductions and avail the benefit of the same in lowering your taxes while filing ITR.

Compute your Income From Other Sources

Try to recall all the sources from which you received income this year. It might be rental income or income from shares or mutual funds or income from the sale of some asset, or any such income which you have not received from your employer. Sum up all such incomes and their quantum for a proper disclosure at the of furnishing your return of income. Also, it might affect your selection of the ITR form.

Know your taxes payable

After ascertaining the sources of income, deductions to be claimed, TDS already deducted the final computation of income will result in two things

1. Either excess taxes have been paid, for which you can avail refund by filing ITR, or,
2. Some tax amounts are still payable, which you must pay before filing an ITR.

Choose the appropriate ITR Form

The selection of the ITR form is one of the most crucial choices. It mainly depends upon your sources of income and the amount earned. Disclosing correct particulars in the wrong Form can result in Invalidating the Return Filed.

File and Submit ITR

The last step involves preparing and submitting your return to the Income Tax Department. Further, don’t forget to e-verify it within 30 days of filing.

The due date for filing your ITR is approaching. e-file your return before it's too late, or you risk losing all the benefits of timely e-filing. If you need assistance with filing your ITR, book your eCA now!