The employer issues the form 16 to the employees. Form 16 signifies that the tax deducted at source is deducted and deposited with the designated authorities on employee’s behalf.

The form 16 assists the assessee in determining different heads of income during the time of filing the returns of the income tax and getting the deductions for saving the tax. Form 16 is a certificate of TDS which lists your TDS and Income Taxable.


If you wish to get information regarding your income and you carry the Form 16, then you need to see its part b. In the part B you can see allowances, profits in lieu of salary, perquisites value, and the salary.

All these things are the part of your total gross salary and signifies your total income. Form 16 is a legal and the valid proof of tax deducted at source or TDS. Form 16 is given by your employer to you during year end. From your salary, your employer deducts TDS each month and submit this amount with the authorities. Form 16 is a certificate of paid income tax.


In the deductions form, you are eligible to get some benefits of tax, and it is displayed in the form 16. Under the section 80 C, you are entitled for a deduction of tax around Rs. 1.5 lakhs if you invest your money in schemes like life insurance premium, public provident fund, and equity linked savings mutual funds scheme.

In the budget 2018, standard deduction of tax around Rs. 40,000 was launched. Transport allowance and the medical reimbursement are scrapped by the government. Now your paper work is reduced as you do not require to submit transport and medical claims bills.

Filing ITR with Form 16

If you want to file the ITR, then with the help of form 16, the whole procedure of ITR filing is very simple. From this year onwards, if you want to file the ITR, then you require to give your salary break-up in the ITR. From form 16, you can quickly access your salary break-up. If in a single year, you changed jobs frequently, then you possess two forms 16 from your previous and the current employers.

You need to ensure that you properly examine the two documents while ITR filing to ignore any type of mistake in the details which you give to the income tax department.

During filing the ITR, you can get following details from the form 16

  1. Salary taxable
  2. Section 80C Deductions breakup
  3. Section 80C Deductions aggregate (deductible and gross amount)
  4. Tax Deducted at Source (TDS)
  5. Refund due or Tax Payable

Extra details which you get from the form 16 while you file your annual ITR are:

  1. Amount of TDS deducted by your employer
  2. Employer TAN
  3. Employer PAN
  4. Address and name of employer
  5. Present Year of Assessment
  6. Taxpayer’s (Your) Address and Name
  7. Your PAN Number

Filing the ITR without form 16

Given below the steps to file the ITR without the form 16.

  • To file the ITR without form 16, you need to find your income taxable and keep a record of all of your payslips.
  • Your 26AS/Credit of Tax will assist you in finding out the total amount of deducted tax.
  • If you are eligible for the HRA, then make claim for it.
  • Deductions claiming
  • Income from different sources
  • Pay extra tax if essential
  • And the final step is to file the return of income tax.

1. Find out your income taxable and make a record of all of your payslips

In the financial year, you need to collect all of your payslips to find out the net salary. If in a financial year, you switch more than one job, then you require to carry all the payslips from your all employers for whom you work during the year.

2. Your 26 AS/Credit of Tax will assist you in calculation of total deducted tax

You require to compute the total TDS deducted by your employer from many years and tally the figures with the amount written in form 26AS. If you see any type of mistake in the deducted amount of TDS, then you require to immediately call your employer and tell them to correct the mistake.

3. If you are eligible for HRA, then claim the HRA

In their salary, most of the employees also have a component and that is HRA (House Rent Allowance). The employees require to submit their receipts of the rent to the department of payroll for claiming the HRA.

4. Deductions claiming

Various investments are deductible for the tax. You need to keep ready your documents of the investments and calculate the eligible amount for deductions under section 80E (interest on loan of education), section 80D (premium of medical insurance), section 80C (public provident fund, employee provident fund, and life insurance).

If you wish to claim provident fund deduction, then ensure that you claim your PF contribution and the contribution of your employer’s.

5. Income from different Sources

If you earn income from different sources then you require to include this income under income taxable. The income sources can include income from property rent, and interest earned on fixed deposits etc.

6. Pay extra tax if essential

If you discover that in a financial year, you paid less tax which is required to payable according to the form 26AS, then you require to online pay variance.

7. Finally, file your return of income tax

After you are sure that paid taxes by you are tally with the payable taxes, then you require to file your returns of income tax online.

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