ITR Filing: You can file income tax return even without Form 16, what is the method for this

Income Tax Return Filing 2024 :As soon as there is a mention of filing income tax return, many employed people first remember Form 16. Because this form is the most important document for them while filing income tax return. Form 16 is usually issued to employees by employers. This form gives details of the salary paid to an employee during that financial year and the tax deducted at source (TDS). But many salaried people, freelancers, consultants and people earning from many different sources do not have Form 16. In such a situation, the question is what will they have to do to file Income Tax Return (ITR) without this important document?We have explained here step-by-step how taxpayers who do not have Form 16 can file their income tax returns.

Gather the necessary documents

First of all, the taxpayer needs to gather all the required documents given below to accurately report his income:

• Salary slip and income details:Salaried individuals should collect monthly and/or annual salary slips with details of their income, deductions and TDS. Non-salaried individuals should collect income details and challans for FY 2023-24.

• Bank details:Obtain bank statements for all your accounts where income is credited. This includes interest earned on savings accounts, fixed deposits and any other income sources.

• Investment Proof : Collect proof of investments made during the financial year under various sections such as 80C (e.g., LIC premium receipts, PPF contributions), 80D (e.g., health insurance premium receipts), and other eligible deductions. This will be required if the taxpayer opts for the old tax regime.

• Rent receipts:If you want to claim tax exemption on House Rent Allowance (HRA), collect all the rent receipts. This will be required if the taxpayer opts for the old tax regime.

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Calculate total income

Once all the required documents are gathered, the taxpayer needs to calculate his gross total income. For this, the taxpayer has to calculate the total income based on the salary slips or income details received from the clients or employers (if applicable). If salaried, the standard deduction of Rs 50,000 as well as tax exemption on HRA and LTA will be deducted from the taxable income. While adding the total income, do not forget to include income from any source including FD, savings account, post office savings scheme. Apart from this, also include rental income, capital gains on investments or any other source of income. If you have income from rent of residential house, then you can claim 30% deduction for maintenance. Also deduct the municipal tax paid. If any interest has been paid on home loan, then it should also be deducted from the rental income.

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Calculate deductions and exemptions

Once the gross total income is calculated, it is important to understand the deductions and exemptions available under various sections of the Income Tax Act. Common deductions include Section 80C (e.g., PPF, NSC, ELSS), health insurance premium under Section 80D, Section 80G, etc. You must have proof for all exemptions claimed.

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Calculate your tax liability

It is important to accurately assess and account for all income and deductions to correctly calculate your total tax liability. Once your taxable income is determined, calculate your tax liability as per the prevailing tax slab rates. While calculating your taxable income, compare your tax liability under both the old and new tax regimes. This will help you choose the regime that will cost you less tax.

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Choose the correct ITR form and fill it

After this, the taxpayer has to select the correct ITR form based on his source of income, residential status and eligibility criteria. Commonly used forms for individual taxpayers generally include ITR-1 (Sahaj) and ITR-2. Choosing the wrong ITR form may result in filing the wrong return. Therefore, care should be taken in choosing the right ITR form.

Submitting ITR Form