Form 16 is a document given to salaried employees under Section 203 of the Income Tax Act. This employer-provided document shows the details of your salary and the tax deducted at source (TDS).
However, even if you don’t have Form 16, you must file your Income Tax Return (ITR). As per the latest income tax laws, you are required to file an ITR if your income exceeds the basic exemption limit of Rs. 3 lakhs (Rs. 2.5 lakhs under the old tax regime).
Failure to file ITR by the due date (usually 31st July) leads to fees and penalties. In the absence of Form 16, you can use several other documents, such as Form 26AS, bank statements, salary slips, and more to calculate your total taxable income.
In this article, let’s see a list of documents you can refer to while filing ITR without Form 16. Also, we will learn the various consequences of non-filing ITR in the absence of Form 16.
What happens when you don’t file ITR before the due date
Due to the lack of Form 16, if you don’t file your ITR before the due date, you can face the following consequences:
- You will be charged a late filing fee under Section 234F of Rs. 5,000 for incomes above Rs. 5 lakhs and Rs. 1,000 for incomes below Rs. 5 lakhs.
- You have to pay interest under Section 234A at 1% per month (or part of a month) on the unpaid tax amount.
- Missing the deadline also means you lose the benefit of carrying forward losses.
Moreover, repeated non-filing is mostly viewed as tax evasion. It could lead to prosecution and might even result in imprisonment ranging from 6 months to 7 years depending on the severity of the default.
What documents to use in the absence of Form 16
If you don’t have Form 16, you can still file your return by using other documents. These help you gather all the necessary details required for your tax filing. Let’s check them out:
1. Get Form 26AS
Download Form 26AS from the official income tax portal. It is a detailed tax statement that shows all TDS (Tax Deducted at Source) credited to your PAN. Compare the TDS entries with your salary slips to ensure they match.
2. Review salary slips and bank statements
Use your salary slips or bank statements to calculate your total salary income. Specifically, check for deductions like Provident Fund or Professional Tax.
3. Examine Annual Information Statement (AIS)
AIS is an extension of Form 26AS. It provides a detailed summary of various financial activities linked to your PAN. From here you can check the following:
- Interest income earnings from savings accounts and fixed deposits with banks and NBFCs
- Dividend income received from shares or mutual funds
- Details of stock market trades
- Mutual fund transactions, such as purchases, redemptions, and dividends
- Information related to foreign remittances
Please note that much of the information provided in AIS is pre-filled in your ITR. This reduces errors and saves you time when filing ITR.
4. Use alternative documents
If you have investment proofs (like insurance or rent receipts), you can use them to claim deductions. Some common documents you can refer to are:
- Insurance premium receipts: For life or health insurance policies under Section 80C and 80D
- Rent receipts: To claim House Rent Allowance (HRA) exemptions
- Home loan interest certificate: For interest paid on home loans under Section 24(b)
- Public Provident Fund (PPF) passbook: To claim deductions under Section 80C
- Fixed Deposit (FD) receipts: For tax-saving FDs with a tenure of 5 years
- Education loan interest certificate: To claim deductions on interest payments under Section 80E
- Medical bills and preventive health check-up bills: For deductions under Section 80D or 80DD for medical expenses.
As a tip, you should make sure all documents are accurate and valid for the financial year. Besides these documents, you should maintain invoices of all the high-value purchases made from online marketplaces or offline stores.
Conclusion
If your taxable income exceeds the basic exemption limit, you must file your ITR before the due date even in the absence of Form 16. This allows you to remain compliant with the tax laws, avoid late fees, and save yourself from hefty interest charges.
To accurately file your return, you can use several alternative documents to Form 16, like salary slips, Form 26AS, investment proof, and the AIS. Using these documents, calculate your taxable income. Next, apply slab rates to determine your outstanding tax liability or refund.
Lastly, visit the official income tax website and log in. Here choose an appropriate ITR form and enter all the details. Submit and e-verify your return within 30 days.
