Filing your Income Tax Return (ITR) is a vital step in managing your finances, ensuring legal compliance, and unlocking benefits such as tax refunds and smoother loan processing. For salaried individuals in India, Form 16 plays a key role by providing a comprehensive summary of income and tax deductions, making the filing process more straightforward.
In this guide, we’ll walk you through everything you need to know about filing your ITR using Form 16 — including who needs it, what it includes, how to pick the correct ITR form, and a detailed step-by-step filing process.
Tip: You can simply upload your Form 16 PDF and file your return within minutes. Our platform auto-extracts your information and walks you through a quick and stress-free filing experience
Form 16 is an annual certificate issued by an employer to a salaried employee, summarizing the salary paid and the Tax Deducted at Source (TDS) on that salary. It is issued under Section 203 of the Income Tax Act, 1961, and serves as proof of income and tax paid during a financial year.
Key Components of Form 16
Form 16 is split into two parts:
Part A:
Employer’s name and address
Employee’s name and address
Employer’s PAN and TAN
Employee’s PAN
Summary of TDS deducted and deposited
Period of employment
Part B:
Detailed salary breakup
Exemptions under Section 10 (e.g., HRA, LTA)
Deductions under Chapter VI-A (e.g., 80C, 80D)
Taxable income and total tax liability
Relief under Section 89 (if applicable)
You will receive Form 16 if:
You are a full-time or part-time employee
Your salary exceeds the basic exemption limit
TDS was deducted by your employer
Note: If no TDS was deducted (e.g., income below the exemption limit), the employer is not required to issue Form 16. However, you can still file your ITR using salary slips and Form 26AS.
Proof of income and TDS: Validates your income and taxes already paid
Simplifies ITR filing: Helps pre-fill salary, exemptions, and deductions
Claim deductions easily: Shows deductions under 80C, 80D, etc.
Required for loans/visas: Used by banks and embassies for income verification
Cross-verification: Helps match TDS with Form 26AS
Determine tax payable/refund: Assists in final tax computation
ITR-1 (Sahaj): Salary income + one house property + other income (excluding lottery/race winnings)
ITR-2: Income from salary, multiple properties, and capital gains (no business income)
Form 16 (Part A & B)
PAN card & Aadhaar card
Bank account details (account number, IFSC)
Form 26AS
Interest certificates (bank savings, FDs)
Investment proofs (80C, 80D, etc.)
Rent receipts (for HRA claim)
Step 1: Log In
Go to the Income Tax e-Filing Portal and log in using PAN credentials.
Step 2: Check Form 26AS
Compare Form 26AS with your Form 16 to verify TDS amounts.
Step 3: Choose the Correct ITR Form
Select the appropriate assessment year and filing mode. Most salaried individuals use ITR-1.
Step 4: Verify Personal Details
Confirm or update auto-filled personal info: PAN, Aadhaar, bank details, etc.
Step 5: Input Salary Details
Use Part B of Form 16 to enter:
Gross salary
Section 10 exemptions (HRA, LTA)
₹50,000 standard deduction
Professional tax
Net taxable salary
Step 6: Add Other Income
Report income from:
Interest (savings, FDs)
Rent
Capital gains
Freelancing/part-time work
Step 7: Claim Deductions (Chapter VI-A)
Use Form 16 and investment proofs to claim:
80C: EPF, PPF, LIC, ELSS, etc.
80D: Health insurance
80TTA: Savings interest
Others: 80E, 80G, etc.
Step 8: Calculate Tax
The system will auto-calculate:
Taxable income
Tax payable
TDS deducted
Refund or remaining tax
Step 9: Pay Remaining Tax (If Any)
Use Challan 280 to pay, and include BSR code and challan number in your return.
Step 10: Submit the Return
Review all entries, then click “Submit”.
Step 11: e-Verify the Return
Verify using:
Aadhaar OTP
Net banking
Bank ATM
Demat account
Or send a signed ITR-V to CPC Bengaluru.
After Filing – What to Expect
Acknowledgement via email
Processing by IT Department
Refund (if any) is credited to your bank
If discrepancies are found, a notice may be issued
Mismatched TDS between Form 16 and Form 26AS
Using the wrong ITR form
Not reporting all income (e.g., interest, rent)
Ignoring exempt income
Skipping e-verification (must be done within 30 days)
If Form 16 is not issued:
Use salary slips to calculate gross salary
Refer to Form 26AS for TDS details
Estimate exemptions and deductions manually
File ITR as usual
Due date: July 31 of the assessment year
Late filing fee: Up to ₹5,000 (u/s 234F)
Interest on late payment: Under Sections 234A, 234B, and 234C
Muskan
Muskan is an experienced legal writer known for simplifying complex legal topics into practical insights. Her work helps entrepreneurs understand and navigate business regulations with confidence, supporting them in launching and running their ventures successfully
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