ITR Deadline for Salaried Employees with Form 16 Issues
- PRITI SIRDESHMUKH
- 3 hours ago
- 8 min read
The last date to file Income Tax Returns (ITR) for salaried employees for FY 2024-25 (AY 2025-26) was September 16, 2025, extended from the usual July 31 deadline due to portal issues. Employees who missed this date still have the option to file belated returns until December 31, 2025, though penalties may apply. A frequent concern for many salaried taxpayers is receiving an incorrect or delayed Form 16. Since Form 16 serves as the key TDS certificate issued by employers, its absence or errors can complicate compliance. Understanding the filing rules, available alternatives, and legal provisions is essential to stay on track and avoiding unnecessary penalties.
Table of Contents
ITR Deadline for Salaried Employees in FY 2024-25
For salaried employees, the due date to file Income Tax Returns for FY 2024-25 (AY 2025-26) was September 16, 2025. This extension was provided by the Income Tax Department to account for portal-related issues, moving the original July 31 deadline. Taxpayers who missed this deadline can still submit a belated return until December 31, 2025, though with late fees. Beyond this date, the only option left is filing an updated return within four years, which may attract additional penalties. Filing within the due date ensures the timely processing of refunds and helps avoid unnecessary legal or financial complications.
Consequences of Missing the ITR Deadline
Failing to file returns on time results in penalties under Section 234F. A flat penalty of ₹5,000 is applicable, but this reduces to ₹1,000 if the total income is below ₹5 lakh. In addition to penalties, delayed filing also leads to interest charges under Section 234A for unpaid taxes. There are indirect consequences as well—such as an inability to carry forward certain losses (like business or capital losses) and slower refunds due to late verification. For salaried employees, timely filing is crucial not only for compliance but also to maintain eligibility for future deductions and smooth financial planning.
Common Form 16 Issues Faced by Salaried Employees
Form 16, issued by employers by June 15 of the assessment year, serves as proof of salary and TDS deductions. However, employees often face issues such as late issuance, mismatched entries between Form 16 and Form 26AS, or incorrect details like PAN, TAN, or TDS figures. In some cases, employers fail to issue Form 16 entirely. These errors or delays can make it difficult to reconcile income details. Such issues need immediate correction, as discrepancies can result in mismatched records and possible notices from the Income Tax Department.
Filing ITR without Form 16: Step-by-Step Guide
Salaried taxpayers can still file returns without Form 16 by following a few systematic steps:
Collect monthly salary slips to compute total annual salary.
Cross-check TDS deductions in Form 26AS and Annual Information Statement (AIS) available on the income tax portal.
Include all allowances, perquisites, and deductions (such as those under Sections 80C, 80D, etc.) with supporting proof.
Ensure that any shortfall between tax deducted and actual liability is paid via self-assessment tax before filing.
File the ITR by entering these details in the e-filing portal or through platforms like TaxBuddy, which automate salary and TDS reconciliation.
Legal Provisions on Form 16 Issuance
Under Section 203 of the Income Tax Act, 1961, employers are legally required to issue Form 16 by June 15 of the assessment year. This responsibility ensures that employees have adequate time to file their returns accurately. The document must include detailed breakups of salary, allowances, exemptions, deductions, and TDS deducted. Failure to issue Form 16 or issuing it with errors violates statutory obligations, potentially exposing employers to penalties and reputational risks. Employees should actively follow up with employers to ensure timely issuance.
Penalties for Employers Not Issuing Form 16 on Time
Employers who delay or fail to issue Form 16 are subject to penalties of ₹100 per day of default under Section 272A(2)(g) of the Income Tax Act. While this penalty is imposed on the employer, employees are the ones most affected, as they lack the primary certificate needed for filing returns. In such situations, employees can rely on salary slips and TDS details available in Form 26AS, but employers remain legally accountable for the lapse. Ensuring compliance by the employer is critical to prevent unnecessary difficulties for salaried staff.
Role of Form 26AS and AIS in Accurate Filing
Form 26AS and the Annual Information Statement (AIS) serve as reliable sources of information when Form 16 is unavailable or incorrect. Form 26AS provides details of all tax deducted at source (TDS), advance tax payments, and refunds, while AIS offers a broader snapshot of financial transactions such as salary credits, interest income, and high-value transactions. By cross-verifying these documents, employees can ensure that their income and taxes paid match with the Income Tax Department’s records. This step reduces the risk of mismatches and notices, making filing accurate and seamless.
Using TaxBuddy for Smart and Error-Free Filing
Digital platforms like TaxBuddy simplify the entire process of ITR filing, especially for salaried employees facing Form 16 issues. The platform enables automated data import from PAN, Aadhaar, and Form 26AS, reducing manual entry errors. Its AI-driven system validates TDS credits and ensures compliance with deadlines. For those with complex cases, including capital gains, stock trading, or NRI income, expert-assisted plans offer personalized guidance. With features such as post-filing notice support and simplified mobile filing, TaxBuddy provides a secure and user-friendly solution for error-free compliance.
Conclusion
Salaried employees must stay aware of deadlines and reporting obligations to avoid penalties and interest. Even without Form 16, it is entirely possible to file returns accurately using alternative documents like salary slips, Form 26AS, and AIS. Modern solutions like TaxBuddy enhance this process by integrating automation and expert assistance. For anyone looking for assistance in tax filing, it is advisable to download the TaxBuddy mobile app for a simplified, secure, and hassle-free experience.
FAQs
Q1. Does TaxBuddy offer both self-filing and expert-assisted plans for ITR filing, or only expert-assisted options?
TaxBuddy offers flexibility to cater to different types of taxpayers. For those confident in handling their own filing, the self-filing option allows uploading of Form 16, salary slips, or Form 26AS, with the system auto-filling relevant fields and performing real-time error checks. For taxpayers with more complex situations or those who prefer professional guidance, the expert-assisted plan connects users with trained tax professionals. These experts review income details, deductions, and exemptions, ensuring accuracy before submitting the return. This dual approach helps taxpayers choose between independence and professional support based on their needs.
Q2. Which is the best site to file ITR?
There are multiple platforms available for filing ITR, including the official Income Tax Department portal and private tax-filing platforms. The best choice often depends on ease of use, error-checking features, and support options. TaxBuddy is frequently recommended because it combines AI-driven automation with human expertise. It not only auto-imports data from PAN, Aadhaar, and Form 26AS but also provides expert-assisted services for complex returns involving capital gains, foreign income, or F&O trading. Its combination of automation, simplicity, and personalized support makes it a strong option for salaried employees.
Q3. Where to file an income tax return?
Income Tax Returns can be filed on the Income Tax Department’s official e-filing portal (incometax.gov.in). This option is free but may require manual data entry and technical understanding of ITR forms. Alternatively, taxpayers can use platforms like TaxBuddy, which simplify the process by automatically pulling data, checking for mismatches, and offering guided filing. These platforms are especially useful when dealing with Form 16 errors, missing TDS entries, or multiple income sources. Choosing between the government portal and a service platform depends on the taxpayer’s confidence and complexity of income.
Q4. What should be done if Form 16 has errors?
If Form 16 contains incorrect information, such as mismatched TDS entries, wrong PAN, or incorrect salary breakups, employees must inform their employer immediately. The employer is responsible for correcting the error in their TDS return and issuing a revised Form 16. Filing with incorrect details may lead to mismatches with Form 26AS and can trigger notices from the Income Tax Department. Taxpayers should always cross-check Form 16 details with Form 26AS and AIS before filing to ensure the reported tax credits match official records.
Q5. Can I file ITR without Form 16?
Yes, filing without Form 16 is possible. Employees can use salary slips to calculate annual income, verify TDS through Form 26AS, and review AIS for additional income details such as interest or dividends. All deductions under Sections 80C, 80D, or others can still be claimed if supported by valid proof. While filing without Form 16 requires additional care to ensure accuracy, it is a fully legal option. Digital platforms like TaxBuddy help automate the process by consolidating income and TDS data without depending entirely on Form 16.
Q6. What is the penalty for late filing of ITR for salaried employees?
Under Section 234F of the Income Tax Act, late filing attracts a penalty of ₹5,000 if filed after the due date but before December 31 of the assessment year. If the total income is below ₹5 lakh, the penalty is capped at ₹1,000. In addition, interest under Section 234A applies if taxes remain unpaid beyond the deadline. Other consequences include the inability to carry forward certain losses and delayed refunds. Filing on time ensures both compliance and smoother financial planning.
Q7. How to verify TDS if Form 16 is missing?
When Form 16 is unavailable, TDS details can still be verified through Form 26AS and the Annual Information Statement (AIS). Both are accessible on the Income Tax Department’s e-filing portal. Form 26AS shows tax deducted by employers, banks, or other institutions, while AIS provides a wider view of income transactions. Employees should ensure the TDS reflected matches their actual deductions. This verification step is critical to prevent under-reporting or mismatches that could later result in notices or penalties.
Q8. What if Form 16 is received after ITR is filed?
If Form 16 arrives after the return has already been filed and discrepancies are discovered, taxpayers should not ignore them. The correct approach is to compare the filed return with the details in Form 16. If differences exist, a revised return must be filed before December 31, 2025. A revised return replaces the original one and ensures that income and TDS details align with employer records, reducing the risk of compliance issues.
Q9. Are employers penalized for not issuing Form 16?
Yes, employers are legally obligated to issue Form 16 by June 15 of the assessment year. Failure to do so attracts a penalty of ₹100 per day under Section 272A(2)(g) until the default continues. Although the penalty is imposed on the employer, employees are impacted most as they rely on this certificate for accurate tax filing. Employees should request Form 16 from their employer and, in its absence, use salary slips and Form 26AS to file their returns.
Q10. What happens if I miss both the original and belated ITR deadline?
If the original deadline (September 16, 2025) and belated deadline (December 31, 2025) are both missed, taxpayers can still file an updated return. Updated returns can be filed within four years from the end of the relevant assessment year, but attract additional penalties and restrictions. For example, higher tax liability may need to be disclosed, and refunds cannot be claimed in the most updated returns. Filing on time or at least within the belated deadline is always preferable to avoid these consequences.
Q11. Can refunds be delayed due to late filing?
Yes, late filing often leads to delayed refunds. The Income Tax Department processes returns on a first-filed, first-processed basis, and delays can push a taxpayer’s refund further down the queue. Moreover, late filing may also reduce eligibility for interest on refunds. Employees expecting significant refunds should prioritise timely filing to ensure faster processing and maximum benefit.
Q12. How can TaxBuddy help with Form 16-related issues?
TaxBuddy simplifies filing even when Form 16 is delayed or incorrect. Its AI-driven system imports income and TDS details directly from official sources like Form 26AS and AIS, minimizing dependency on Form 16. It auto-reconciles salary data, checks for mismatches, and ensures compliance with deadlines. For more complex cases, expert-assisted filing provides professional review and error correction. By reducing errors and offering notice-handling support, TaxBuddy provides peace of mind to salaried employees facing documentation issues.
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