Form 16 contains details of the amount of tax deducted at source (TDS) on salary by your employer. It also includes the breakup of your salary into following components:
Under Section 203 of the Income Tax Act, 1961, Form 16 is a certificate issued annually by the employer to his salaried employee. It is a certificate of proof of the TDS deducted and deposited on your behalf by your employer.
Having the Form 16 simplifies the ITR filing and allows you to claim relief on TDS.
June 15, 2018 (for the F.Y. 2017-18) is the last day for the employer to issue Form 16 to his employees. As per Rule 31 – sub rule 3 of The Income Tax Rules, 1962 - the Due Date of furnishing Form 16 to the employee is “By the 15th day of June of the financial year immediately following the financial year in which the income was paid and tax deducted”.
July 31, 2018 (for the F.Y. 2017-18) is the last date of ITR filing for all taxpayers including individuals, Hindu Undivided Family (HUF), Body of Individuals (BOI) and Association of Persons (AOP) . The executions in this case are:
This gives you a window of 45 days between the date of receiving your salary Form 16 and the date of filing your return. Ideally, you should wait for the Form 16 from your employer before filing your tax return, as it is a simpler and more effective way of doing so.
At times, you may not receive Form 16 on time. This could be for a number of reasons like the employer’s business being shut down or you leaving the employer without completing necessary exit formalities or employer delaying in giving the form to you.
Sometimes, an employer may not issue Form 16 as the salary from the income he pays is below the taxable income. In such a case, you will have to file income tax return without Form 16.
You can do so by following these steps:
The procedure is much simpler if you do receive the Form 16:
Considering the ease of filing and the lack of ambiguity, it would be definitely a good idea to file your returns after receiving Form 16 from the employer.
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