AY 2026-27 ITR Guide for Salary Paid Without TDS
When an employer pays salary but does not deduct TDS, the tax burden does not disappear — it simply shifts entirely to the employee. For FY 2025-26 income that you are now preparing for AY 2026-27, this means you need to account for that tax yourself, either through advance tax paid during the year or through self-assessment tax before filing. The process is straightforward once you know what to gather, but a rushed filing — especially without reconciling your AIS and bank credits — can create mismatches that take months to resolve.
Why this situation is more common than you think
Smaller employers, startups, and certain professional firms sometimes fall short on TDS compliance for various reasons: cash-flow constraints, turnover below threshold, or simply administrative gaps. Employees in these arrangements receive their full salary credit but have no Form 16 to show for it. Come filing season, the question is the same every year: how do I report this income correctly, and what do I need to prove it?
The honest answer is that there is no shortcut. You will need to reconstruct your income from salary slips and bank credits, check whether advance tax was paid on time (due dates are 15 June, 15 September, 15 December, 15 March), and compute any interest liability under sections 234B and 234C if payments were delayed or insufficient.
Pre-filing checklist
Before you open the filing utility, confirm each of these:
- Pull your AIS and Form 26AS from the income tax portal and look for any TDS entries from your employer. If there are none, that confirms you are filing without any TDS credit from salary.
- Tally every bank credit that corresponds to salary. Unexplained credits often get flagged.
- Check whether your employer issued any letter or salary statement. Even an informal email confirmation is useful to retain.
- Decide your ITR form. Most salaried individuals with only one income source use ITR-1, but if there is business income alongside, ITR-3 may be required. Use the ITR form selector if you are unsure.
- Settle the tax regime question — new regime is the default for AY 2026-27 unless you explicitly opt for the old regime.
Documents to keep ready
| Document | Why it matters |
|---|---|
| salary slips | Primary proof of income when no Form 16 exists; match the amounts against bank credits month by month. |
| bank credits | Independently corroborate salary received; the AIS often picks up credits from your bank, so alignment matters. |
| employment letter | Establishes the employment relationship and salary structure, useful if a notice or query arises. |
| challan if tax paid | Advance tax or self-assessment challan proves tax was remitted; BSR code and date must be entered correctly in the return. |
| PAN and bank details | Required for refund credit and identity matching across the return and challan records. |
| A short review note | A one-page summary of what you verified — income, tax paid, sources cross-checked — creates a useful audit trail. |
Practical example
Suppose you received salary of ₹7.5 lakh during FY 2025-26, but your employer deducted no TDS. You realise this in April 2026 while preparing to file. First, download your AIS — you will likely see the salary credit reported there if the employer filed their TDS returns (even if no tax was withheld, section 192 reporting may still apply). Next, check if you paid any advance tax. If not, compute the shortfall and pay self-assessment tax now before filing. Enter the challan details in the return, report the income correctly under "Salary", and e-verify within 30 days of filing. Keep all documents together for at least six years.
The most common mistake in this situation is underreporting income because there is no Form 16 as a prompt. Your AIS will reflect what the employer disclosed, but discrepancies between AIS and your actual receipt must be explained — not ignored.
Official source baseline
| Source | Link |
|---|---|
| Income Tax Department - AY 2026-27 ITR utilities | Open source |
| Income Tax Department - Income Tax Returns FAQs | Open source |
| Income Tax Department - Salaried Individuals AY 2026-27 | Open source |
| Income Tax Department - Annual Information Statement | Open source |
| Income Tax Department - Tax Credit Mismatch FAQs | Open source |
MyeCA workflow
Use ITR form selector to confirm which form applies to your income profile, then use Get Expert Tax Review if you want a CA to review the challan details, advance tax computation, or advance tax interest before you file. For further reading:
Reviewer notes for employees without employer TDS
A CA or tax reviewer looking at this file should verify: the income head is correctly identified as "Salary", the ITR form is appropriate, the tax regime choice is documented, no TDS credit is claimed that does not appear in Form 26AS, advance tax challans are correctly mapped to BSR codes and dates, and e-verification status is confirmed. If any mismatch exists between AIS-reported salary and actual receipts, the nature of the difference should be documented before the return is filed.
Frequently asked questions
Is this article a substitute for professional advice?
No. Use it as an educational checklist and get case-specific review where documents, income heads, or eligibility are unclear.
Which year does this AY 2026-27 guide cover?
AY 2026-27 generally relates to FY 2025-26 income, subject to the facts of the taxpayer and official filing utility rules.
What should I check before filing?
Check the ITR form, tax regime, AIS, Form 26AS, TDS certificates, bank details, and the documents supporting the income or deduction.
Final takeaway
Filing without a Form 16 is not unusual, but it demands more care, not less. Reconstruct your income from primary records, settle any outstanding tax before filing, and cross-check every figure against the AIS. A clean return today avoids a notice tomorrow.