Every year during the spring season, one must have observed people groaning about tax returns. It is very important to pay taxes as it is a civic duty.
Taxes are used to supply funds to many government programmes. It helps to establish safe roads where one travels is well-maintained. Government tries to help poor and less privileged people with various schemes from the tax money as well as improving country’s economy.
Here are some ways to file income tax return and avail benefit without form 16:
Calculate Income from Salary
For calculating it, all the monthly salary lips are required. It contains the information of allowances provided to you like the PF deducted, TDS and so on.
There are numerous sections under Income-tax where one can avail many benefits and deductions. For instance,
Section 80C which includes PPF, life insurance, equity savings schemes, Home loan benefits and so on. One can claim a benefit up to 1.5 lakhs.
Section 80D which includes health check-ups and insurance. In which you can claim to benefit up to 25000 rupees.
Take help of Tax Credit / 26-AS to know the accurate Tax Deducted
Calculate Tax Deducted at Source(TDS) lowered by your firm over past years and check the amount indicated in Form 26AS.
Calculate Income from capital gains
If there are any capital gain from the sale of the equity funds, equity aligned mutual funds then one needs to get a total summary statement from the company, in such case people can avail a benefit and it will be exempt only if it is held for more than a year and sold before 31 March. In cases of profit from the selling property or from other real estate business, one needs to have the summary of it.
Calculate income from other sources
This includes interest from numerous bank savings, deposits in post offices, recurring deposits (RD), Fixed deposits (FD) or any other term deposit, interest on income tax return, and many more. One can go through to the bank passbook to get to know about the income from interest and Form 26AS.
Calculate TDS deducted
Form 26AS provides the data of TDS deducted from your salary and other sources of the income. It is necessary to cross verify the TDS deductions from the values present in the Form 26AS, as there might be some errors. If any errors are present, then immediately contact your manager or firm. Therefore, match the TDS value in Form 26AS with sources like TDS on salary slips, TDS on FD with the necessary interest certificates.
Compute income tax liability
On the total taxable income check your income tax liability. According to form 26AS, If the total tax liability is more than the tax paid, then get ready to pay the excess price to the income tax department.
File your Income tax return
Follow the above-mentioned steps and e-file your ITR without using Form 16. But don’t forget to e-verify within 120 days otherwise a fine may be imposed on you. Pay your taxes on time for the welfare of the country.