ITR Form 16 Filing: How to File ITR Using Form 16

Understanding Form 16

Form 16 is a certificate issued by an employer under Section 203 of the Income Tax Act, 1961. It serves as proof that Tax Deducted at Source (TDS) has been deducted from an employee’s salary and deposited with the government. Form 16 is divided into two parts:

Part A

Provides details of the employer, employee, PAN, TAN and a summary of tax deducted and deposited. This part is generated and validated through the TRACES portal.

Part B

Contains a detailed breakup of salary components, exemptions and deductions claimed under various sections such as 80C and 80D. It helps employees verify whether all eligible deductions are reflected.

Form 16 is essential for salaried individuals as it simplifies the process of filing income tax returns by ensuring accurate reporting of income and taxes already paid.

Latest Updates in Form 16 for FY 2024-25

Increased Standard Deduction under New Tax Regime

For FY 2024-25, the standard deduction under the new tax regime has been increased from ₹50,000 to ₹75,000. This change reduces the taxable income, thereby lowering the tax liability for those opting for the new regime.

Also Read: Benefits of Filing Income Tax Return (ITR) 2025

Step-by-Step Guide to File ITR Using Form 16

• Gather all essential documents such as Form 16, Form 26AS, investment proofs, salary slips and bank statements.
• Login to the Income Tax e-filing portal using your PAN credentials.
• Select the appropriate ITR form. Salaried individuals generally use ITR-1 (Sahaj) if they have income up to ₹50 lakh from salary, one house property and other sources. If there are capital gains or multiple properties, ITR-2 is applicable.
• Fill in personal and income details as mentioned in Form 16.
• Enter TDS details provided in Part A of Form 16.
• Add eligible deductions listed in Part B such as Section 80C (investments), 80D (medical insurance), 80E (education loan) and 80CCD(1B) (NPS).
• Cross-check tax paid with details in Form 26AS to ensure accuracy.
• Compute tax payable or refund due after adjusting deductions and advance tax, if any.
• Submit the return and complete the e-verification process using Aadhaar OTP, net banking or digital signature.

Also Read: How to File ITR After Due Date

Choosing the Correct ITR Form with Form 16

Selecting the correct ITR form is crucial as filing under the wrong form may render the return defective.

Documents Required for ITR Filing Using Form 16

• Form 16, Part A and B, issued by employer
• Form 26AS, also known as Tax Credit Statement
• PAN and Aadhaar Card
• Bank account details such as account number and IFSC code
• Investment receipts or proofs for deductions under 80C, 80D and others
• Salary slips and rent receipts if claiming HRA

Common Mistakes to Avoid When Filing ITR Using Form 16

• Not reconciling Form 16 with Form 26AS which may result in mismatches.
• Choosing an incorrect ITR form.
• Failing to report additional income such as interest, rental or freelance earnings.
• Ignoring disclosure of exempt income such as HRA or LTA.
• Not completing e-verification within 30 days of filing, which may render the return invalid.

What Happens After You File ITR with Form 16?

Once the ITR is filed and e-verified, an acknowledgement (ITR-V) is generated and sent to the registered email. The Income Tax Department then processes the return, cross-verifying details with Form 26AS and Annual Information Statement (AIS). If everything aligns, refunds are issued within a few weeks. If there are any discrepancies, the department may issue a notice.

Benefits of Filing ITR Using Form 16 for Salaried Employees

• Filing ITR using Form 16 provides several benefits for salaried employees:
• Ensures accurate reporting of salary income.
• Acts as proof of TDS and tax already paid.
• Enables claiming of all eligible deductions.
• Reduces chances of receiving tax notices due to mismatches.
• Facilitates faster processing and issuance of refunds.

Tips and Best Practices for Accurate ITR Filing with Form 16

• Always cross-check details in Form 16 and Form 26AS.
• Claim all eligible deductions supported by valid proofs.
• File returns well before the due date to avoid penalties.
• Maintain a record of supporting documents for future reference.
• Use digital Form 16 features for auto-population of data to minimise errors.

FAQs

Q.1. Can I file ITR without Form 16?

A. Yes, ITR can be filed without Form 16 by using salary slips, Form 26AS, AIS and bank statements to compute income and taxes paid.

Q.2. How to get digital Form 16 if employer does not provide it?

A. Employees should request their employer to issue Form 16 as it is their statutory responsibility. It is not available directly from the tax portal.

Q.3. What to do if Form 16 contains errors?

A. Immediately contact the employer for correction. A revised Form 16 must be issued to ensure accurate ITR filing.

Q.4. How long do I have to e-verify my ITR?

A. ITR must be e-verified within 30 days of filing, failing which the return is considered invalid.

Q.5. Can I upload multiple Form 16s for multiple employers?

A. If you have changed jobs, use details from all Form 16s. The Income Tax Department portal does not require or accept multiple Form 16 pdfs.

Q.6. Is Form 16 mandatory for filing ITR?

A. Form 16 is not mandatory, but it simplifies the process. It is highly recommended for salaried individuals.

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