File Income Tax Return: With Form 16 and Without Form 16

ITR Filing with Form 16

What is Form-16?

Form-16 is a certificate issued by the employer to their employees. It contains details about salary, allowances as well as deductions made by the income tax department. This document shows the figure of tax deducted at source by the income tax department. This information is very essential for the employee as the same is used by the employee while preparing & filing his or her income tax return. Form -16 states that TDS is already deducted at source and deposited to the income tax authorities on behalf of the employee.

It is issued by the employer annually on or before 15th June of the next year just after the completion of the financial year in which the tax is deducted. In case you lose your Form-16, you can request your employer for the duplicate one.

Form – 16 is divided into two parts –

1. PART - A
2. PART – B

Form 16 PART A

An employee can generate or download PART A of Form-16 via TRACES portal for which the link is given below –

https://www.tdscpc.gov.in/app/login.xhtml

The employer should authenticate the contents of Form – 16 before issuing it to the employee. In case you change your organization and join some other company in the same financial year, the new employer will issue a separate PART A of Form 16 to the employee and specify his or her period of employment.

PART A of Form-16 contains many components but the major components are –

• Name & Address of the employer
• TAN of the employer
• PAN of the employer
• PAN of the employee
• Summary of tax deposited as well as deducted on quarterly basis. It should be certified by the employer.

Form 16 PART B

It is an annexure to PART A. In case you change your job and join some other company in the same financial year, then you have to take the decision that whether you want PART B of Form 16 from both of the employers or from the last employer. As per FY 2019-20, some of the new components added by the income tax department which are as follows –

• Detailed breakup of salary
• Detailed breakup of exempted Allowances under section 10
• Deductions allowed under the income tax act (under Chapter VIA)

Deductions under Income Tax

Deductions under income tax are mentioned below –

1. Deduction in respect of life insurance premium, contributions to provident fund etc. under section 80C.
2. Deduction in respect of contribution to certain pension funds under section 80CCC.
3. Deduction in respect of employer’s contribution to pension scheme under section 80CCD(1)
4. Deduction in respect of total amount paid or deposited to notified pension scheme under section 80CCD(1B)
5. Deduction in respect of employer’s contribution to pension scheme under section 80CCD(2)
6. Deduction in respect of payment of health insurance premium under section 80D
7. Deduction in respect of interest on loan taken for higher education under section 80E.
8. Deduction in respect of donations to charitable institutions or funds under section 80G.
9. Deduction in respect of interest on saving deposit account under section 80TTA.
10. Relief under section 89

Important details while preparing for Yearly Tax Return filing from Form16

Important details needed from Form16 while preparing & filing yearly tax returns –

1. Deductions breakup under section 16
2. Allowances exempt under section 10
3. House property income reported by employee offered for TDS
4. "Income under the other sources" head offered for TDS
5. Taxable salary
6. Break up of deductions under section 80C.
7. Aggregate deduction amount under section 80C.
8. Tax payable or refund due

Other Information used by the Taxpayer while Filing Annual Returns

Other information used by the taxpayer while filing annual returns are as follows –

1. Tax deducted at source by the employer
2. PAN of employer
3. TAN of employer
4. Name & address of the employer
5. Taxpayer’s name & address
6. Current year of assessment
7. Taxpayer’s PAN

ITR Filing without Form 16

Steps to file the ITR without the form 16 are as follows -

• To file the ITR without form 16, you need to find your income taxable and keep a record of all of your payslips.
• Your 26AS/Credit of Tax will assist you in finding out the total amount of deducted tax.
• If you are eligible for the HRA, then make claim for it.
• Deductions claiming
• Income from different sources
• Pay extra tax if essential
• And the final step is to file the return of income tax.

1. Find out your income taxable and make a record of all of your payslips

   In the financial year, you need to collect all of your payslips to find out the net salary. If in a financial year, you switch more than one job, then you require to carry all the payslips from your all employers for whom you work during the year.

2. Your 26 AS/Credit of Tax will assist you in calculation of total deducted tax

   You require to compute the total TDS deducted by your employer from many years and tally the figures with the amount written in form 26AS. If you see any type of mistake in the deducted amount of TDS, then you require to immediately call your employer and tell them to correct the mistake.

3. If you are eligible for HRA, then claim the HRA

   In their salary, most of the employees also have a component and that is HRA (House Rent Allowance). The employees require to submit their receipts of the rent to the department of payroll for claiming the HRA.

4. Deductions claiming

   Various investments are deductible for the tax. You need to keep ready your documents of the investments and calculate the eligible amount for deductions under section 80E (interest on loan of education), section 80D (premium of medical insurance), section 80C (public provident fund, employee provident fund, and life insurance).

   If you wish to claim provident fund deduction, then ensure that you claim your PF contribution and the contribution of your employer’s.

5. Income from different Sources

   If you earn income from different sources then you require to include this income under income taxable. The income sources can include income from property rent, and interest earned on fixed deposits etc.

6. Pay extra tax if essential

   If you discover that in a financial year, you paid less tax which is required to payable according to the form 26AS, then you require to online pay variance.

7. Finally, file your return of income tax

   After you are sure that paid taxes by you are tally with the payable taxes, then you require to file your returns of income tax online.

How Finacbooks can help?

Finacbooks is a leading Indian platform with more than 10 years of experience in guiding taxpayers about Form-16 and helping them in solving their queries. As per budget 2018, there are certain changes made by the government in Form-16. We will guide you through the entire process of Form-16. To know more, Kindly call us at 8800221252 or you can also e-mail us at info@finacbooks.com