To make tax filing simpler for salaried individuals, the Income Tax Department has launched Digital Form 16.
This move follows the recent update of ITR Forms 1 to 7 and aims to make filing returns easier and more accurate.
Digital Form 16 already contains details of salary, TDS (tax deducted at source), and other key information.
What is Form 16?
Form 16 (or 16A) is a certificate that employers issue to employees when they deduct TDS from their salaries.
It shows how much tax was deducted and paid to the government. Employees usually receive this document by the end of May each year.
How Digital Form 16 Works
The Digital Form 16 is now generated directly from the TRACES portal, which ensures that the information it contains is accurate and consistent.
It includes complete details like salary, tax-free allowances, and deductions, helping avoid errors when filing returns.
Now, taxpayers can upload Digital Form 16 directly to tax filing websites. The system reads the data and auto-fills the required fields.
This saves time and reduces chances of mistakes. If any error is found, the system will alert the user so it can be corrected before submission.
Which ITR Form Should You Use?
There are two simple return forms for individual taxpayers:
ITR-1 (Sahaj): For individuals with an annual income up to Rs 50 lakh, who earn from salary, one house property, interest, and up to Rs 5,000 in agricultural income.
ITR-4 (Sugam): For individuals, HUFs (Hindu Undivided Families), and firms with income below Rs 50 lakh from business or profession.
Last Date to File ITR
For individuals who don’t need an audit, the last date to file returns is July 31.
For businesses and professionals who require audit, the deadline is October 31.
With the launch of Digital Form 16, filing income tax returns has now become easier, quicker, and safer than ever before.
