Type 16 is a certificates supplied by the employer to workers with particulars of tax deducted at supply (TDS) and break up of wage element. As per revenue tax guidelines, each employer should concern Type 16 to workers with revenue topic to TDS. Nevertheless, there could be situations of Type 16 not issued, similar to when revenue is under fundamental exemption, or a taxpayer has switched jobs and never acquired Type 16 or, an employer is winding up enterprise.
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Earlier than continuing, you have to know that Type 16 solely simplifies the submitting of return and isn’t obligatory. So, if you have not acquired your Type 16 due to any such purpose, there isn’t any must panic, you may nonetheless file you returns on time foundation the steps talked about under.
Step 1: Decide revenue from all sources
First, you could decide revenue acquired from all sources within the monetary 12 months. You will need to embrace incomes earned from sources similar to:
Wage and Pension: “You will have to offer an in depth breakup of your wage like gross wage, perquisites, allowances, and many others., for submitting ITR. You could verify your payslips for this objective. Now, take down the online wage from all of the payslips you will have acquired out of your employer within the monetary 12 months. In case you will have switched jobs within the related monetary 12 months, take into account the payslips from all employers with whom you will have labored,” stated Archit Gupta, Founder and CEO, ClearTax.
Revenue from home property: When you have any rented home property, please report annual lease revenue below home property revenue.
Capital Positive aspects: In respect of long run or short-term capital acquire on any home property, you have to derive an correct calculation of good points by taking account of indexation profit in case of long-term good points. “For calculating capital good points, you could have buy deed, sale deed together with receipts of stamp responsibility, brokerage, registration expenses, and many others., paid available. Within the case of capital good points associated to shares and mutual funds, you have to get an in depth abstract of such good points and losses out of your dealer. Long run capital acquire on shares as much as ₹1 lakh is exempt, whereas quick time period capital acquire might be taxed at flat 15%,” Gupta stated.
You will need to know that when you have any capital acquire revenue or loss to be carried ahead, ITR 1 can’t be filed. In such instances, ITR 2 or ITR 3 might be relevant.
Revenue from different sources: Revenue from saving financial institution curiosity and glued deposit (FD) curiosity, curiosity on refund, and many others., are coated below this head. Please acquire FD slips and curiosity certificates from the financial institution for recording curiosity revenue from FD. Some banks present these particulars on their web banking portal additionally which could be simply obtained by logging in to your internet banking account. For saving account curiosity, you have to add the curiosity credit by the financial institution in all saving accounts.
Step 2: Receive Type 26AS
The TDS deducted in your revenue talked about in wage slips must be cross-checked with the TDS quantity talked about in your Type 26AS. Type 26AS could be downloaded from the TRACES web site of the revenue tax division.
Type 26AS is an annual credit score assertion issued by the tax division. Type 26AS will also be termed as an annual tax assertion.
Step 3: Declare Deductions
Ensure that to assert numerous funds and investments as deductions from revenue whereas paying revenue tax.
Wage slips will comprise info regarding PF deducted, TDS and so forth which must be claimed as a deduction. Gupta stated, “Once you declare a deduction for Provident Fund (PF), be sure to declare solely the contribution made in direction of the PF and never your employers’ contribution. Preserve funding proofs of ELSS, LIC premium receipts, receipt of tuition charges of youngsters paid helpful for claiming deduction below Part 80C of Revenue Tax Act. When you have made a fee of medical insurance coverage for your loved ones or dependent mother and father, please acquire the receipts and declare the identical below 80D deduction.”
Step 4: Declare HRA and different exemptions
Home Hire Allowance (HRA) could be claimed whether it is acquired as a separate element in wage slip. To say the HRA deduction, you have to submit your lease receipts to the payroll division of your organization. Even should you haven’t submitted the receipts to your employer, you may nonetheless declare it whereas submitting ITR.
Additionally, keep in mind to avail the exemptions like Go away journey allowance (LTA), customary deduction of ₹50,000 from wage and many others.
“For those who obtain a rental revenue from home property, a flat 30 per cent deduction is allowed from this rental revenue. In case of self-occupied property on a house mortgage, keep in mind to assert the house mortgage principal below 80C and curiosity deduction as much as ₹2 lakh allowed below home property revenue,” stated Gupta. You too can keep in mind to assert saving financial institution curiosity as much as ₹10,000 below Part 80TTA of the Revenue Tax Act.
Step 5: Compute your complete taxable revenue
As soon as deductions to be claimed are decided, the entire taxable revenue is to be computed. Complete taxable revenue could be computed by deducting the entire deductions to be claimed (as computed in Step 3,4) from the entire revenue earned within the monetary 12 months (as computed in Step 1)
Step 6: Compute your tax legal responsibility
You possibly can compute your tax legal responsibility by making use of the related tax slab charges as relevant to you.
Step 7: Decide tax payable
If the TDS deducted on revenue is lower than the tax legal responsibility as computed, the distinction quantity is the tax to be additional paid by the taxpayer earlier than submitting ITR. Nevertheless, if the TDS deducted is greater than the tax legal responsibility, extra tax paid could be claimed for a refund whereas submitting ITR.
Step 8: E-file your ITR
As soon as all of the steps above have been accomplished, the taxpayer can go forward and go to Incometaxindiaefiling.gov.in web site and file their ITR with out Type 16.
Step 9: E-verify your returns
As soon as the return is filed, keep in mind to e- confirm it. ITR filed with out e-verification is incomplete and won’t be thought of for processing by the revenue tax division. “You possibly can e- confirm your return by way of any mode obtainable on the ITR web site. For example, you may e- confirm your return by way of internet banking, financial institution ATM, demat account quantity, Aadhar OTP, or bodily e-verification by sending a signed copy to CPC, Bengaluru inside 120 days of e-filing and many others.,” stated Gupta.