Tax guide

AY 2026-27 ITR Guide for Salary Paid Without TDS

Employees whose employer did not deduct TDS can use salary slips, bank credits, and employment letter to compute salary income, check advance tax or self-assessment tax, and preserving employer proof.

Written by MyeCA Editorial Team, Tax and Scheme Research Desk

Published 2026-05-27T00:00:00.000Z

No payroll TDS does not make salary tax-free. Gross salary, allowances, perquisites, other income, final liability, and any advance or self-assessment tax must be calculated from the complete facts.

Rebuild gross salary from salary slips and the employment letter, reconcile net bank credits, and calculate the tax balance without inventing a TDS credit that does not appear in Form 26AS.

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Calculate salary and tax even when payroll deducted nothing

Build a month-by-month salary sheet from payslips, employment terms, annual payroll information, bank credits, reimbursements, perquisites, arrears, and final settlement records. Net salary credits do not show gross income, and the absence of a Form 26AS credit does not remove salary from the return. Record why no TDS was deducted and whether the employer's payroll information is complete.

Add other income and prepare the regime comparison before calculating the final liability. Check whether advance tax, self-assessment tax, or interest questions arise from the complete facts rather than from the employer's zero-TDS position. If salary or payroll records are missing, request them and keep the correspondence; do not invent a tax credit or annual gross figure. Preserve the salary reconstruction, challans, final computation, submitted return, and verification acknowledgement so the payment trail remains clear. <!-- ay-route-specific-depth:end -->

Calculate the salary liability without assuming a tax credit

Reconstruct gross salary month by month from the employment agreement, payslips, annual payroll information, bank credits, reimbursements, perquisites, arrears, and final settlement. Record why no TDS appears and whether the employer's payroll is complete. Net credits cannot establish gross salary, and the absence of TDS does not remove the income from the return.

Add every other income source before comparing regimes and calculating the final liability. Then decide whether payment and interest questions need attention from the complete computation, not from the employer's zero-withholding position. If payroll records are incomplete or the employer should correct reporting, retain the correspondence but do not invent a Form 26AS credit or reduce salary to fit available cash. The form choice should reflect capital gains, freelance receipts, foreign assets, and other facts beyond salary. Preserve the salary reconstruction and any challans with the filed return. Pause where perquisites are unreported, multiple employers used different records, foreign salary is involved, or the payment timing and interest calculation remain unresolved.

Read salary slips, bank credits, and employment letter for different facts

  • Salary slips: Use salary slips for the person, period, amount, or filing fact it directly establishes for salary without TDS ITR. Compare that fact with bank credits, and keep any unresolved difference visible in the working before deciding how to compute salary income, check advance tax or self-assessment tax, and preserving employer proof.
  • Bank credits: Bank credits prove the date and net movement of money relevant to the evidence review; they rarely prove the whole tax treatment. Connect each material credit or debit to employment letter and explain transfers, withholding, or non-income amounts.
  • Employment letter: Use employment letter for the person, period, amount, or filing fact it directly establishes for the supported conclusion. Compare that fact with correction trail and filing acknowledgement, and keep any unresolved difference visible in the working before deciding how to compute salary income, check advance tax or self-assessment tax, and preserving employer proof.

Resolve salary slips and bank credits differences before filing

Escalate disputed payroll, multiple employers, missing salary records, foreign salary, unreported perquisites, or a liability that may involve interest and needs timely payment.

Before submitting, compute salary income, check advance tax or self-assessment tax, and preserving employer proof. Record what employment letter establishes, explain any remaining difference, and retain the correction trail and filing acknowledgement with the final computation.

Official references