As the income tax filing season approaches, salaried individuals in India prepare to submit their returns, with Form 16 playing an essential role in the process. Issued by employers, Form 16 certifies the Tax Deducted at Source (TDS), providing a detailed summary of an employee’s salary and the taxes deducted throughout the financial year.

With the advent of digital platforms, accessing and using Form 16 has become more straightforward, making it a vital document for accurate and hassle-free income tax return (ITR) filing.

HOW TO ACCESS DIGITAL FORM 16

To obtain Form 16 digitally, employees or employers can visit the official TRACES portal. Users need to log in with their TAN (Tax Deduction Account Number), password, and captcha code.

Once logged in, navigate to the ‘Downloads’ tab and select ‘Form 16’ under the available options. It is necessary to select the relevant financial year and form type, usually Part A and Part B, ensuring that the employee’s PAN and other details are correctly entered.

After processing, Form 16 is available for download from the ‘Downloads’ section. Employers usually issue Form 16 to employees by June 15 of each assessment year, allowing enough time for tax filing.

STRUCTURE OF FORM 16

Form 16 is divided into two parts. Part A contains the employer and employee details, along with a summary of the tax deducted and deposited with the government.

Part B provides a detailed breakdown of salary components, exemptions, deductions, and the overall tax payable or refundable. This comprehensive structure aids taxpayers in cross-verifying their salary details and taxes paid, ensuring that all necessary deductions and exemptions are accurately accounted for when filing their returns.

SIMPLIFYING THE E-FILING PROCESS

For salaried taxpayers, uploading the digital Form 16 on tax filing platforms can considerably simplify the return filing process.

These platforms automatically import salary details, TDS, exemptions, and deductions, ensuring real-time validation against Income Tax department requirements. Any discrepancies can be corrected before submission, minimising errors and reducing the risk of notices.

Upon filing, taxpayers complete the e-verification process using Aadhaar (OTP), net banking, or by sending a signed ITR-V to the Centralised Processing Centre. The shift to digital has revolutionised how salaried taxpayers manage their tax documentation, making timely and accurate tax filing more achievable.