Exploring Alternatives to Form 16 for Tax Filing

In India, Form 16 is crucial for salaried employees to file income tax returns. It functions as a comprehensive record of the Tax Deducted at Source (TDS) on their salary. It also offers various insights, including the breakdown of the salary components and information pertaining to deductions under various sections of the Income Tax Act.

While Form 16 is important, you can file your ITR without the form. This usually happens when an employee does not receive Form 16 from their employer, either due to changing jobs without finishing the exit formalities or business closures. However, you are required to collect various documents that serve as your proof of income. Afterwards, you must manually calculate the deductions and exemptions, select the correct ITR form, and fill out the form accurately by entering the deductions, income, and other relevant details.

Important documents you need to collect to file ITR without Form 16

As previously mentioned, you can file your tax returns without Form 16 by collecting several documents. Let us take a closer look at each of these documents and their importance.

Form 26AS

One of the most crucial documents is Form 26AS, which offers a comprehensive overview of your tax status for the given financial year. This form provides details pertaining to the Tax Deducted at Source (TDS), advance tax, high-value transactions (such as opening FD in an NBFC exceeding Rs. 10 lakh or purchasing white goods from online marketplaces exceeding Rs. 1 lakh), tax refunds, and other tax-related information.

Form 26AS allows you to verify tax deductions, reconcile income, and prepare your tax returns accurately.

Annual Information Statement (AIS)

Another important document while filing your tax returns without Form 16 is the Annual Information Statement (AIS), which provides comprehensive insights into your financial transactions over the financial period. This information is given by various institutions and includes savings account interest, income from investments, mutual funds, purchase and sale transactions of immovable properties, etc.

You also have the option to report inconsistencies in the information displayed through AIS. Besides the reported value (by institutions), it also shows the adjusted value.

Tax Information Summary (TIS)

The Tax Information Summary (TIS), which is a part of the Annual Information Statement, provides an overall summary of your income. This includes interest, salary, and dividends. It offers information pertaining to the filed tax returns, refunds received, taxes paid, and other details.

TIS primarily ensures that the form is pre-filled accurately, depending on the information provided by various institutions and the comments you provide regarding AIS.

Other documents

Besides the documents mentioned above, you must also collect your salary slips, investment proofs, bank statements, and home loan documents.

  • Your salary slip offers a snapshot of your gross salary, allowances, deductions, and net salary.
  • On the other hand, your investment proofs corroborate the deductions on certain investments under various sections of the Income Tax Act.
  • By claiming deductions, you can lower your tax liability. Under several sections of the Income Tax Act, including but not limited to Sections 80C, 80CCC, 80CCD, and 80D, you can avail of tax breaks on investments made in life insurance premiums, PPF, NPS, mutual funds, ELSS, and other instruments. However, to claim these deductions, you must provide investment proof.
  • By providing bank statements, you can claim interest deductions while filing your tax returns. Banks deduct TDS if the interest income from fixed deposits, savings accounts, and other deposits goes beyond a specific limit. You can claim the TDS amount as a tax credit while filing your ITR.
  • Lastly, your home loan documents allow you to claim deductions on the interest paid on your home loan under section 24(b). Additionally, u/s 80C of the Income Tax Act, you can also claim deductions on the principal sum you repay towards your home loan. Your home loan documents help you accurately calculate and claim these deductions.

Conclusion

Form 16 is a crucial document that streamlines the tax filing process. However, if you do not have access to your Form 16, you can still file your ITR using several other documents. These include Form 26AS, Annual Information Statement (AIS), Tax Information Summary (TIS), salary slips, investment proofs, bank statements, and home loan documents. While the process may be more tedious compared to having access to your Form 16, you can accurately and efficiently file your returns using these documents.

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