Filing an income tax return is an important task for every taxpayer in India. But the process can become a bit tricky for those who do not have a Form 16.

Usually, salaried employees receive Form 16 from their employers, which details the salary earned and the taxes deducted at source. For those changing jobs and freelancers, especially, who may not have a Form 16, the process requires a few extra steps.

First, let’s take a look at what Form 16 is.

Form 16 is a document that must be provided by employers to their employees. It serves as a TDS certificate, detailing the employee’s taxable income and applicable deductions. This document is essential for employees when filing their income tax returns.

According to the Income Tax Act, when an employer deducts TDS from an employee’s salary, the employer is required to issue the Form 16 once a year, on or before June 15 of the financial year following the year in which the tax was deducted.

In some instances, employers may not provide a Form 16 to employees. This is usually seen with employees whose taxable income falls below the basic exemption limit, as they are not required to pay income tax. As a result, employers may choose not to issue a Form 16 in such cases.

Similarly, freelancers, who are not salaried employees and do not have a formal employer-employee relationship, also do not receive a Form 16. This, though, does not exempt them from the responsibility of filing their income tax returns.

So, here’s how taxpayers who do not have a Form 16 can file an ITR:

Gather Income Details

Before filing your ITR, collect all the documents that show the income you earned throughout the year.

This includes:

  • Payslips and bank statements: If you have changed jobs during the year, ensure you have all the payslips from both employers. Your payslips will show the salary earned each month, bonuses, and any other perks received. Bank statements can also help verify the amount credited to your account.

  • Freelancer income: For freelancers, gather invoices, payment receipts, and any contracts signed with clients. Ensure you have accurate records of the amounts received for your freelance work.

  • Other sources of income: If you have additional sources of income like interest from savings accounts, fixed deposits, or capital gains from investments, gather the relevant documents to account for this income.

Calculate Your Total Income

Without Form 16, you’ll need to manually calculate your total income. Salaried individuals need to add up the total salary earned from all employers. Don’t forget to include other benefits like bonuses, allowances and any reimbursements. You should also consider any deductions made for provident fund, gratuity or other similar funds.

Freelancers have to add up all the payments received for the services rendered. Ensure that you’re including the total amount received and not just the net after deducting any expenses.

Include any other income like interest, dividends or rental income. Use Form 26AS (available on the Income Tax Department’s website) to cross-check any tax deducted on these incomes.

Calculate Taxable Income

Now that you know your total income, calculate your taxable income by subtracting eligible deductions under Section 80C, Section 80D, etc. These deductions will reduce your taxable income, thereby lowering the amount of tax you owe.

Calculate Your Tax Liability

Once your taxable income is determined, you can calculate your tax liability based on the applicable tax slabs. For freelancers or those who have not had taxes deducted at source, you may need to make the payment for the tax due when you file the ITR.

Submit ITR, Make Tax Payments (If Applicable)

Once you’ve filled out the form and reviewed all the information, submit the ITR. If any tax is due, make the payment through the online portal. After the payment is made, you will be asked to e-verify your ITR.

E-Verify Your ITR

To complete the filing process, you need to verify your return. You can e-verify your ITR using one of these methods — Aadhaar OTP, net banking, electronic verification code sent to your registered email or mobile number or by sending a physically signed copy of ITR-V to the Income Tax Department.

Once verified, your ITR will be processed and you will receive an acknowledgement from the Income Tax Department.

Filing your ITR without Form 16 might seem difficult, but by following these steps, it becomes manageable. Keep accurate records of all your income and expenses, and make sure to account for all deductions. For job changers and freelancers, this process may take a little more time but it ensures that you stay compliant with tax regulations and avoid penalties.

. Read more on Personal Finance by NDTV Profit.Before filing your ITR, collect all the documents that show the income you earned throughout the year.  Read MorePersonal Finance 

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