How Can I Handle Tax Payments Without Form-16 in a Startup Job? Seeking Advice!

Hi all, I hope all is good with you 

My current situation:
I'm working in a start-up company (less than 10 people) for the past 1+ year; CTC around 4.5 LPA; no PF and TDS deduction being carried out. I have been receiving my salary in my bank account only after demonetization (past 6 months only); before that, I received my salary as a cheque. Currently, my employer is not providing Form-16 and says we are an LLC (Limited Liability Company). With self-interest, I would like to pay the tax.

Questions:
1. Can I pay tax on my own with payslips?
2. If yes, can I show the paid IT tax/returns receipt to the next recruiter (if I switch over to a new company, because the new recruiter asks for Form-16)?

Please guide me 

Thanks & Regards,
Anbu Kumar

Dear Anbu Kumar,

Since your organization employs fewer than 20 workers, the provisions of the EPF Act are not currently applicable. However, if the employer and the majority of employees consent, it can be implemented under Section 1(4), known as voluntary coverage.

Regarding the deduction of TDS, if your income from salary and other sources exceeds the ceiling limits, the deduction of TDS on the salary portion becomes the responsibility of your employer. If your employer has not deducted TDS, you can file your income tax return and provide your payslip as proof of your salary in the absence of Form 16.

Thank you.

Thanks for the reply.

Can I show the paid IT tax/returns receipt to the next recruiter in the absence of Form-16? (Because the new recruiter is asking for Form-16.)

Yes, you can show the complete set of documentation to the prospective employer along with your salary slips.

First of all, you have to compute what your 'Taxable income' is for every year. Then, you'll know how much income tax (IT) needs to be remitted to the government account, or whether you are not subjected to IT. This is because you have stated a CTC of Rs. 4.5 L per annum, and there is no bifurcation available. Some components of the CTC are tax-free. If you consider the entire 4.5 L as taxable, you end up paying IT for the exempted income as well, which is unnecessary. If you wish, you can determine the taxable income and tax liability using an automatic computation Excel sheet made available by our friends on the internet. Make use of these tools to ascertain your financial position. If you are taxable, you can remit the tax and file the return in the applicable online form. While Form 16 issued by the employer does not need to be compulsorily attached to the return, paying taxes is still your responsibility. Once paid, all IT payments made by you are accessible on the IT Department's website online; download them for your records.