When it comes to Income Tax Return (ITR) filling, many taxpayers gets confused about which form to use. Most of the taxpayers rely on Form 16 provided by the employers to file their ITR.
However, in some stance, it is possible to file the returns without this document but by using other documents like salary slips and Form 26AS.
Salary slips contain details of taxable income components, serving as an alternative to Form 16 for understanding salary breakdowns.
What is Form 16 and Form 26AS
Basically, Form 16 is a certificate provided by employers, confirming tax deductions from the employee's salary whereas Form 26AS is a detailed overview of financial activities, including income and tax payments associated with the PAN number.
The Form 26AS can be found on the TRACES website which provides the information on tax deductions and other financial related transactions.
Steps for filing ITR | Representative
What are the steps for filing ITR without For Form 16
1. Download the Form 26AS from TRACES portal and review the TDS deductions.
2. The next step is to calculated deductions and investments that can reduce taxable income
3. Calculate the income from other sources besides salary.
4. Select the appropriate ITR Form based on income sources.
5. File and submit the ITR Form, and ensure compliance by e-verifying within 30 days.
What is the importance of form 16?
The Form ͏16 serves as ͏proof of income and tax deductions and is also important for accurate filing of ITR. It is typically issued by the employers by mid June each year.
There is also a distinction between form 16, 16A, and 16B. Form 16 represents tax deductions from salary ͏by employers, while͏ ͏Form 16A provides a summary of the deductions. On ͏the other hand, Form 16B provides a͏ consolidated statement͏ of various financial details related with an employee's income.
