How to file ITR Without Form 16

Step 1: Compute income from salary  Advisable to obtain Form 16 which the employer is bound to issue to avoid any discrepancies. In case this is not feasible, use salary slips, bank credits, employment letter, deductions for provident fund/profession tax and tax deducted for computation of salary income without Form 16.

From FY 17-18 and onwards, gross salary should provide complete breakup for reporting it in ITR. The amount of salary shall be inclusive of various allowances provided by the employer. 

 

Step2: Match the TDS deducted with Form 26AS  Form 26AS contains details of TDS deducted not only on salary income, but also on other incomes such as interest, and rent.

Cross check TDS with the figures shown in Form 26AS to avoid loss of tax credits.

If discrepancies exist the assessee needs to contact his employer or person deducting tax for the rectification of the same. 

 

Step 3: Compute income from house property  Income from house property covers the rent earned from the house property which is chargeable to tax.  Income from one self-occupied property considered as nil. Further, if the assessee had availed any housing loan either on the let out property or on the self-occupied property and is paying interest on such loan, then he will get deduction of the same under this head. 

In case of self-occupied property, the interest deduction is limited to Rs 2 lakh.

If you own more than one house property, the national income is chargeable to tax.

Step 4: Compute income from capital gains  Profit or gain arising from transfer of capital asset held as investments such as shares or property is chargeable to tax under the head capital gains.

The gain can be on account of short-and long-term gains depending on the period of holding. Generally, benefit of inflation indexed cost is available for long term capital gains.

 

Step 5: Compute Income from other sources  Consider interest on various bank deposits, interest on income tax refund, dividends exceeding Rs 10 lakh and so on Check Form 26AS for tax deducted.

 

Step 6: Claim all eligible deductions and rebate Claim other deductions under section 80C and 80CCD like PPF, EPF, life insurance premium, health insurance premium, interest on home loan, principal repayment of home loan, interest on education Loan, National Pension System etc. 

Keep their relevant proofs for verification. 

Other key deductions are section 80D for medical insurance premium, 80G for donations and section 80TTA for interest on savings bank account.

Claim tax rebate of Rs 2,500 where taxable income is up to Rs 3.50 lakh

Step 7: Compute total taxable income and tax liability Interest and additional fees may be payable apart from income-tax. The tax rates have to be applied on the total income to arrive at the income-tax liability.

Step 8: Declare exempt income, foreign source income and foreign assets (if any) Declare exempt income such as agricultural income or dividends up to Rs 10 lakh.

 

Step 9: Pay additional tax (if required) 

 

Step 10: File Correct ITR  Select the Correct Form ITR 1 or 2 (where no business or professional income).

Return needs to be filed in case taxable income (before deduction under Chapter VIA such as section 80C) exceeds basic exemption limit. 

Mandatory e-filing where taxable income exceeds Rs 5 lakh or in cases of refunds.

No attachments in case of e-filing.

Now, assessee can file his income tax return without Form 16.

Assessee should e-verify the same within 120 days of filing by sending Form ITR- V to the Income-tax CPC, Bengaluru RSM Astute Consulting Group. 

Text: DNA Money