No Form 16? File ITR using AIS and Form 26AS
As the Income Tax Return (ITR) filing season kicks off, a lot of salaried taxpayers may have already received their Form 16. However, some employees might still be waiting for their Form 16 from their employers. So what should you do if your employer has not issued it yet?
Here's everything you need to know about Form 16, whether you can file your ITR without it, and how to download and use AIS and Form 26AS to verify your income and tax details.
What is Form 16 and who receives it?
Form 16 is a certificate issued by an employer that shows your salary income and the tax deducted (TDS) from it during the financial year.
“It serves as documentary evidence of salary income paid, exemptions claimed under Section 10, standard deduction, deductions under Chapter VI-A, taxable salary computed, tax deducted at source, and the corresponding remittance to the Government,” says CA Hitesh Jain, Partner, Direct Tax, N. A. Shah Associates LLP.
Form 16 comprises two parts: Part A, which contains employer and employee particulars, TAN, PAN, period of employment, and quarterly TDS summary as per TRACES data; and Part B, which is an annexure reflecting a detailed breakup of salary, exemptions, deductions, and tax computation, he adds.
It needs to be issued only where TDS has been deducted from salary. “If TDS is not deductible or not deducted, the employer is not under any statutory obligation to issue Form 16,” says Rahul Charkha, Partner, Economic Laws Practice. However, as a good practice, certain employers still issue Form 16 to their employees even if no TDS is deducted.
For a given financial year, the employer must issue Form 16 on or before 15 June of the immediately following financial year, he adds.
What if you do not receive Form 16 from your employer?
The responsibility to issue Form 16 lies with the employer. While Form 16 helps you file your ITR, it is not mandatory. But even if Form 16 has not been received despite TDS being deducted, taxpayers can still file their income tax return.
According to CA Abhishek Soni, CEO, Tax2win, if your employer has not provided Form 16:
“Where TDS has been deducted but is not reflected in these statements, the employee should immediately request the employer to verify PAN mapping, file or revise the relevant quarterly TDS return (Form 24Q), and ensure that correct credit is reported on TRACES. The ITR should be filed based on accurate and complete income particulars, supported by available documentation,” points out Jain.
How to download Annual Information Statement (AIS) online?
The AIS can be accessed through the Income Tax e-Filing portal. Here is the step-by-step guide to download AIS online from the income tax portal, according to Jain.
AIS covers a wide spectrum of information including salary, interest, dividend, securities and immovable property transactions, TDS/TCS credits, tax payments, GST turnover, and foreign remittances, among other specified financial transactions.
How to download Form 26AS?
Form 26AS can also be accessed through the Income Tax e-Filing portal.
What is the password required to open the AIS PDF?
The AIS PDF is protected by a password that follows a fixed format: your PAN in lowercase letters, followed immediately by your date of birth (for individuals) or date of incorporation (for non-individuals) in DDMMYYYY format, with no spaces in between.
“For instance, for PAN ABCD1234E and date of birth 1 January 2001, the password is ' abcd1234e01012001 ',” says Charkha.
Once accessed with this password, the AIS PDF displays the information collated by the department on TDS/TCS, interest, securities and mutual fund transactions, specified financial transactions and other reported items, which should be reconciled with the taxpayer’s own records before filing the return, he adds.
How to verify AIS details before filing your ITR
After downloading the AIS PDF, the taxpayer should open it using a compatible PDF reader, enter the password as above, and carefully review each information category.
“The review should cover all reported income, TDS/TCS credits, tax payments, specified financial transactions, and other reportable items. Each category should be cross-verified with personal books, bank statements, investment account statements, capital gain statements from brokers/mutual funds, and tax payment challans,” says Jain.
Here's everything you need to know about Form 16, whether you can file your ITR without it, and how to download and use AIS and Form 26AS to verify your income and tax details.
What is Form 16 and who receives it?
Form 16 is a certificate issued by an employer that shows your salary income and the tax deducted (TDS) from it during the financial year.
“It serves as documentary evidence of salary income paid, exemptions claimed under Section 10, standard deduction, deductions under Chapter VI-A, taxable salary computed, tax deducted at source, and the corresponding remittance to the Government,” says CA Hitesh Jain, Partner, Direct Tax, N. A. Shah Associates LLP.
Form 16 comprises two parts: Part A, which contains employer and employee particulars, TAN, PAN, period of employment, and quarterly TDS summary as per TRACES data; and Part B, which is an annexure reflecting a detailed breakup of salary, exemptions, deductions, and tax computation, he adds.
It needs to be issued only where TDS has been deducted from salary. “If TDS is not deductible or not deducted, the employer is not under any statutory obligation to issue Form 16,” says Rahul Charkha, Partner, Economic Laws Practice. However, as a good practice, certain employers still issue Form 16 to their employees even if no TDS is deducted.
For a given financial year, the employer must issue Form 16 on or before 15 June of the immediately following financial year, he adds.
What if you do not receive Form 16 from your employer?
The responsibility to issue Form 16 lies with the employer. While Form 16 helps you file your ITR, it is not mandatory. But even if Form 16 has not been received despite TDS being deducted, taxpayers can still file their income tax return.
According to CA Abhishek Soni, CEO, Tax2win, if your employer has not provided Form 16:
- Contact your HR or employer and request it.
- Use your salary slips, bank statements, AIS, and Form 26AS to calculate your income and taxes.
- Check Form 26AS to ensure that the TDS deducted by your employer has been deposited with the government.
“Where TDS has been deducted but is not reflected in these statements, the employee should immediately request the employer to verify PAN mapping, file or revise the relevant quarterly TDS return (Form 24Q), and ensure that correct credit is reported on TRACES. The ITR should be filed based on accurate and complete income particulars, supported by available documentation,” points out Jain.
How to download Annual Information Statement (AIS) online?
The AIS can be accessed through the Income Tax e-Filing portal. Here is the step-by-step guide to download AIS online from the income tax portal, according to Jain.
- After logging in with valid credentials (PAN and password), navigate to Services → AIS.
- Select the applicable financial year and choose to either view the statement online or download it in PDF or JSON format.
AIS covers a wide spectrum of information including salary, interest, dividend, securities and immovable property transactions, TDS/TCS credits, tax payments, GST turnover, and foreign remittances, among other specified financial transactions.
How to download Form 26AS?
Form 26AS can also be accessed through the Income Tax e-Filing portal.
- Log in to the e-Filing portal.
- Go to e-File → Income Tax Returns → View Form 26AS.
- You will be redirected to the TRACES portal.
- Accept the terms and conditions.
- Select the relevant assessment year.
- View or download Form 26AS in PDF format.
What is the password required to open the AIS PDF?
The AIS PDF is protected by a password that follows a fixed format: your PAN in lowercase letters, followed immediately by your date of birth (for individuals) or date of incorporation (for non-individuals) in DDMMYYYY format, with no spaces in between.
“For instance, for PAN ABCD1234E and date of birth 1 January 2001, the password is ' abcd1234e01012001 ',” says Charkha.
Once accessed with this password, the AIS PDF displays the information collated by the department on TDS/TCS, interest, securities and mutual fund transactions, specified financial transactions and other reported items, which should be reconciled with the taxpayer’s own records before filing the return, he adds.
How to verify AIS details before filing your ITR
After downloading the AIS PDF, the taxpayer should open it using a compatible PDF reader, enter the password as above, and carefully review each information category.
“The review should cover all reported income, TDS/TCS credits, tax payments, specified financial transactions, and other reportable items. Each category should be cross-verified with personal books, bank statements, investment account statements, capital gain statements from brokers/mutual funds, and tax payment challans,” says Jain.
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