Why salaried taxpayers should not file ITR without Form 16: Key risks explained

As the ITR filing season for AY2026-27 gathers pace, salaried taxpayers need one of the most important documents to file their tax returns: Form 16. While employers are legally required to issue Form 16 by 15 June under Rule 31(3) of the Income Tax Rules, 1962, delays are not uncommon.

With the deadline for salaried taxpayers to file their ITR set for 31 July 2026, filing ITR without Form 16 could result in costly reporting errors.

According to Mrinal Mehta, Joint Secretary at Bombay Chartered Accountants' Society (BCAS), while filing without Form 16 is legally permissible, it can expose taxpayers to several reporting risks if proper precautions are not taken.

Form 16 remains a key document for salaried taxpayers

Form 16 is a Tax Deducted at Source (TDS) certificate issued by an employer under Section 203 of the Income Tax Act, 1961. It serves as a consolidated record of an employee's salary income, taxes deducted, exemptions, allowances, perquisites, and deductions claimed during the financial year.

“Form 16 is the primary document a salaried employee uses to file their Income Tax Return. In essence, it is a consolidated salary summary of gross pay, allowances, perquisites, exemptions, and deductions — all in one place,” Mehta explains.

Because it brings together all salary-related tax information, Form 16 often acts as the foundation for preparing an accurate income tax return.

What can go wrong when you file without it?

When Form 16 is unavailable, taxpayers have to compile and verify their income details from several documents. Mehta elaborated on the key errors that could occur in filing ITR without Form 16.

Income and TDS mismatches

The Income Tax Department cross-checks every return against your Annual Information Statement (AIS) and Form 26AS. If your reported income or TDS credit does not tally with these records, you may receive a notice, face a refund hold, or receive a demand for additional tax.

Missed or wrong deductions

Claims under Section 80C, 80D, HRA, housing loan interest under Section 24(b), and donations under Section 80G can go wrong if you rely solely on memory or incomplete documents. A wrongly claimed deduction or a missed one can affect your tax liability significantly.

Complex salary structures

If your pay package includes ESOPs, perquisites such as rent-free accommodation or concessional loans, or expatriate benefits, these require precise reporting.

Such components are often reported by the employer in Form 12BA or in Part B of Form 16. Their omission or misreporting is one of the more common triggers for scrutiny.

Other income overlooked

Bank interest, fixed deposit interest, dividends, rental income, and capital gains are not captured in salary documents but are fully visible in AIS. Missing these could result in under-reporting and attract interest and penalties.

What taxpayers should do if Form 16 is delayed?

Mehta advises taxpayers not to wait indefinitely for Form 16, but also not to rush into filing an inaccurate return. Instead, he recommends taking the following steps to ensure correct reporting.

Taxpayers should first download and review their AIS and Form 26AS from the Income Tax Department's e-filing portal. These documents provide the most reliable record of income and taxes reported to the government.

Salary income can be reconstructed using monthly payslips, salary credit entries in bank statements, and any bonus or increment letters received during the year.

Taxpayers should also gather all supporting documents relating to deductions, including investment proofs, home loan interest certificates, rent receipts and donation receipts carrying valid 80G registration details.

Where discrepancies arise or the tax situation is complex, Mehta says consulting a Chartered Accountant can help ensure accurate reporting.

Why is accuracy most important in filing ITR?

According to Mehta, filing without Form 16 is not prohibited, but it is unforgiving of errors.

“The Income Tax Department's systems today are highly data-driven, and any inconsistency between what you report and what the government already knows is quickly flagged," he noted.

“A little patience and diligence now can save you considerable trouble in the form of notices, demands, and delays down the line,” he added.

Disclaimer: This is only for informational and educational purposes. Please consult a qualified tax expert for the latest tax laws and regulations. The views and opinions expressed above are solely those of the expert and do not reflect the views of Mint.