Can I Claim Deductions Without Form 16?

Form 16 is a document given to salaried employees by their employer. This document is helpful when filing your Income Tax Return (ITR), as it shows your deductions, salary income, TDS, and more.

When you are filing your return under the old regime, Form 16 helps you to accurately enter the details of all your eligible deductions. However, If you don’t have Form 16, you can still claim deductions as long as you have proof of those expenses and investments.

In this article, let’s see what are the various documents you can use to support your claims when filing your tax return.

Does Form 16 show deductions

Yes, Form 16 shows deductions. It is a certificate issued by your employer under Section 203 of the Income Tax Act, 1961. Usually, Form 16 is divided into two parts:

Part A Part B
●      It covers your personal information, like Name and PAN.

●      Shows employer’s details, such as name, PAN, and TAN.

●      Displays a summary of the tax deducted and deposited quarterly.

 

●      This part shows a detailed breakup of your salary.

●      Covers allowances exempt under Section 10

●      Shows all the deductions allowed under Chapter VI-A, such as Sections 80C, 80D, 80G, etc.

●      Displays relief under Section 89 (if applicable).

Hence, we can clearly see from the above table that Part B of Form 16 lists all your deductions. While filing your ITR under the old regime, you can easily refer to them and reduce your taxable income.

How to claim deductions without Form 16

Even without Form 16, you can claim tax deductions available under Chapter VI-A of the Income Tax Act. Let’s see what documents you would need to claim these deductions:

1. Documents required for Section 80C investments

This section allows deductions for investments up to Rs. 1.5 lakh in specified financial instruments. Let’s have a look at some popular instruments and corresponding documents you will need to substantiate your claim:

Eligible investments Documents required
Public Provident Fund (PPF) ●      PPF passbook

●      An account statement showing contributions made during the financial year.

Life Insurance Premiums: ●      Premium receipts

●      Policy statements showing the amount paid.

Equity-Linked Savings Schemes (ELSS) ●      Investment receipts

●      Account statements from the mutual fund provider.

National Savings Certificates (NSC) ●      NSC certificates
Five-year fixed deposit with banks and ●      Fixed deposit receipts

●      Bank statements

Home loan principal repayment ●      Home loan repayment schedule from NBFCs or banks

●      Account statements showing principal repayments.

2. Documents required to claim premiums paid under Section 80D

Under Section 80D, you can claim deductions for premiums paid on health insurance policies. As a proof, you must keep

  • Policy documents

and

  • Receipts of premiums paid

If you are also claiming preventive health check-up expenses, keep receipts of payments made for health check-ups.

3. Documents required for claiming donations under Section 80G

Under Section 80G, you can claim deductions for donations made to specified charitable organisations. To claim them, you will need a duly stamped receipt, which acknowledges the donation. Usually, you get this receipt from a charitable organisation. Such receipts have the following details:

  • Your name
  • Address
  • Amount donated
  • The organisation’s PAN number.

As a tip, always ensure the receipt contains the trust’s registration number. Such a number is usually provided by the Income Tax Department.

Some general guidelines

In the absence of Form 16, follow these general guidelines to remain compliant when claiming deductions:

  • Always keep the original receipts and documents as proof of your claims.
  • Try to maintain digital copies of all documents for easy access and backup.
  • Keep all the invoices of your high-value purchases from online marketplaces or offline stores.
  • Before claiming deductions, ensure that the organisations or instruments you invest in are eligible for deductions under the respective sections.

Conclusion

Even without Form 16, you can still claim tax deductions under various sections of the Income Tax Act, such as 80C, 80D, and 80G. To claim these deductions, you must keep proper records of your expenses and investments. Some common documents you should maintain are:

  • Passbooks, receipts, and policy statements for investments under Section 80C
  • Health insurance policy documents for Section 80D
  • Donation receipts for Section 80G

Additionally, always ensure these documents are original and properly stamped. That’s because they serve as proof of your claims.

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