In India, for filing an Income tax return of the salaried person, various documents are necessary.
In those documents, form 16 is a Vital document. This year we are facing many issues due to lockdown, hence there is a possibility that you may not receive your form 16. But don’t worry if you don’t have the form 16, you can still file your tax return even without it.
How? Let’s see
What is Form 16?
- Form 16 contains the details of employee’s earning and Tax deducted by the employer.
- When the employer deducts the Tax from the salary, he ought to give form 16 to an employee, once a year, on or before 15th June.
- Tax is applicable to the employee whose income exceeds the limits set by government i.e. Rs. 2,50,000.
- If income does not exceed the limit, the employer does not deduct tax and may not issue Form 16.
But if our income exceeds this basic limit of Rs 2,50,000, we all have to file our income tax return whether we received form 16 or not. Do not worry, just sit back and relax, we can still file the return, How? Let’s see.
Step 1: Calculation of Salary
The first thing you need to do is check your salary slips, so that you can get details of the total salary, allowances you received etc.
What if you don’t have a salary slip?
Oops … A few of our friends may not be having salary slips, but don’t worry, everything has a solution. What is a basic document you could have that shows how much salary you received during the year? Think… Yes, you are right- Bank statement. You can now add up the amount to derive the total salary you received for the year.
Exempt allowances
Some Beneficial Points in this Regard:
• Ensure to use the allowances that reduce your tax liabilities like LTA, HRA, etc.
• Avail the standard deduction of Rs 50,000.
(Please note: In new tax regime various deductions and exemptions cannot be claimed)
STEP 2:
Now you need to find how much tax was deducted on income.
You can take help of form 26 AS, which you can easily download form income tax
portal.
STEP 3: Add up income
Add up Income from all the sources to derive the total income you earned for the year.
Step 4: Claim your deductions.
After you derive your total income, it is the time to claim the benefit of all the investment you made during the year... Very well, now it's a deduction time. Basic investment such as LIC, investments made in post office savings
scheme, NPS, pension funds, PPF, donations, etc.( in the new tax regime most of the deductions are not available)
Until this step, You have already completed your 80% of return filing work.
STEP 5: Compute tax liability
Now it is time to compute your tax liability.
Tax liability for the year can be computed by applying the tax slab rates as applicable to the taxpayer.
Step 6: Determine tax payable or refund.
If your tax liability is lower than the TDS already deducted from your income then congratulations, you will get the refund of it.
If the situation is reversed then you have to pay the balance amount.
STEP 7: File the return
Hey, friends, you successfully gathered everything, now you can go ahead and file IT return.
So do not worry if you don’t have Form 16, you can still file your Tax return by following the above steps.
Happy return filing.
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