Form 16 is a TDS certificate that an employer gives to employees every year. It shows details of salary, deductions, and tax deducted at source. This document helps salaried people file their income tax return (ITR).
Employers must issue Form 16 on or before June 15 of the year following the financial year, but sometimes, employees do not get it. This mostly happens when their taxable income is below the exemption limit.
Still, every salaried person must file an ITR if their income is above the basic exemption limit — ₹2.5 lakh under the old regime or ₹3 lakh under the new regime.
When Form 16 is Not Issued?
No TDS Deducted
If no TDS is deducted, the employer does not need to issue Form 16 Part A. However, the employer can still give Form 16 Part B.
TDS Deducted but No Form 16 Issued
If an employer deducts TDS, they must issue Form 16 from the TRACES portal. This shows that the tax has been paid to the government, and if the employer fails to issue Form 16 after deducting TDS, they face a penalty of ₹100 per day until they comply.
You can report this to the Assessing Officer, and the officer may take strict action, including penalties and further legal steps.
Your Form 26AS will also show the TDS deducted, and if TDS is missing in Form 26AS, it may mean the employer deducted tax but did not deposit it. In that case, you must pay the tax directly and later recover it from your employer.
No Form 16 Does Not Mean No Tax
If your income is above the exemption limit, you must calculate and pay tax even without Form 16. Filing an ITR is your responsibility, not the employer’s.
Steps to File ITR Without Form 16
Step 1: Calculate Income from All Sources
Add your income from salary using monthly payslips, and if you had multiple employers, include income from each. Also, add income from rent, capital gains, bank interest, and FDs.
Step 2: Check TDS on Income
Download Form 26AS from the TRACES website. It shows the TDS deducted. Also, check the Annual Information Statement (AIS) to confirm all income details are correct.
Step 3: Claim Deductions and Exemptions
If you pay rent, you can claim House Rent Allowance (HRA). Submit rent receipts to your payroll department. If you missed that, you can still claim HRA while filing. Use an HRA calculator if needed. You can also claim other deductions like LIC premiums, tuition fees, and investments under Section 80C.
Step 4: Compute Total Income
Add income from salary, property, capital gains, and other sources. For example, if your bank account shows a salary credit of ₹9,000 and Form 26AS shows ₹1,000 TDS, then your total salary income is ₹10,000.
Step 5: Apply Deductions
Subtract eligible deductions like your PF contribution, medical insurance (80D), home loan interest (80EEA), and education loan interest (80E). Remember, claim only your PF contribution, not your employer’s.
Step 6: Find Taxable Income
Your taxable income is the total income minus all deductions.
Step 7: Calculate Tax Liability
Apply the income tax slab rate (old or new regime) to your taxable income.
Step 8: Check Tax Payable or Refund
Compare your tax liability with the TDS already deducted. If TDS is less, pay the balance tax. If TDS is higher, claim a refund.
Step 9: File Your ITR
Once all steps are complete, log in to the income tax e-filing portal and submit your return.
What If Form 16 Arrives Late?
If you get Form 16 later and it does not match the return you filed, you can revise your ITR. For FY 2023-24, you can file a revised return until December 31, 2024.
Not receiving Form 16 does not stop you from filing ITR. Use payslips, Form 26AS, and AIS to calculate income, claim deductions, and pay taxes. Always ensure you file your return before the deadline to avoid penalties.
