In India, a salaried employee needs Form 16 when filing income tax returns (ITR). Before the Assessment Year 2025-26 arrives, you should understand Form 16, what is included and how to file your tax return with it. Find out all about Form 16, updated guidance and useful tips for putting it to work easily.
What Is Form 16?
An employee who has a salary gets the Form 16 from the employer, containing a summary of the money received and the tax which was deducted on it. This is made and given under Section 203 of the Income Tax Act, 1961, as proof that the tds return filing in mumbai has been paid by the employer to the Income Tax Department. By June 15, 2025 (AY 2025-26), employers have to hand out Form 16 to their employees. When you have changed jobs this year, remember to get Form 16 from each employer for the time you worked with them.
Components of Form 16
The tax filing form, Form 16, contains parts called Part A and Part B which have different roles in the process.
Part A
Section one is made up of three parts:
- Employer and employee’s full name and address
- The employer’s PAN stands for Permanent Account Number and the TAN is known as Tax Deduction and Collection Account Number.
- Employee’s PAN
- How long you worked with the employer
- A look at the amount of earnings and the amount of taxes taken out and put into the government every quarter
Once created in the TRACES portal by the employer, this section is needed to confirm that the right amount of tds return filing in mumbai is paid to the government.
Part B
This annexure which is prepared by the employer, gives these details:
- Complete information on base pay, allowances and perquisites.
- Examples of exemptions from Section 10 are HRA and LTA
- Section 80C, 80D, 80G, etc. of Chapter VI-A
- Total income earned minus the amount allowed to be deducted
- Total tax you must pay, the tax withheld and the difference between the two
It is essential for employees to learn about their salary, investment in tax-saving options and the resulting tax cost during this step.
What Makes Form 16 Needed?
Form 16 is necessary for various important reasons:-
- ITR Filing: When using ITR Filing, you will find everything you need to complete your return such as total income, TDS deductions and allowed reductions.
- Proof of Tax Payment: A tax payment proof indicates that your employer has paid your tax to the government on your behalf.
- Loan Applications: Banks and financial organizations sometimes need you to present Form 16 to prove your income while approving your loans or credit card applications.
- Tax Refunds: When additional tax is deducted, Form 16 helps you receive a refund when you file your ITR.
What’s different in Form 16 for the year 2025?
The appearance of the new Form 16 has been improved for easier understanding. The format now shows a clearer outline of salaries, allowances and different deductions you can use. Having this repetitive structure helps reduce the risks of confusion and mistakes during ITR filing.
How to Use Form 16 for ITR Filing in 2025
- Collect Your Form 16: Make certain that you have Form 16 from your employer by June 15, 2025. If your job shifts, be sure to get a copy of it from each firm.
- Verify Details: Cross-check all your personal and salary information with what is found on your earnings statement.
- Choose the Correct ITR Form: Depending on where your income comes from, you should pick either ITR-1 or ITR-2 as your tax form.
- Enter Salary and TDS Details: Use Part B of Form 16 to detail your salary, exemptions and deductions in the ITR form.
- Claim Deductions: Check that all qualified deductions such as those from Chapter VI-A (80C, 80D, etc.), are added to your Form 16.
- Check Tax Calculation: Check that tax amounts and TDS are the same in your Form 16 as they are on the tax analysis offered by your employer.
- File and Verify ITR: You should send your ITR online to the Income Tax Department and handle the e-verification process as well.
Common Questions
What happens if my employer doesn’t supply me with Form 16?
Government rules state that employers must supply Form 16 if any TDS has been taken from your income. If not, you should submit your salary slips and Form 26AS with your return.
Do I have to include Form 16 when filing my ITR?
The process is easier and more accurate if you receive Form 16.
What happens if the TDS you receive doesn’t match what you were advised?
Review Form 26AS and inform your employer if you find any problems.
Conclusion
Form 16 greatly simplifies the procedure for filing income tax for salaried individuals. By clearly showing you your salary, exemptions and deductions, you can file your ITR for 2025 with full accuracy. If you prefer expert help with understanding what Form 16 means or filling your tax return, Epsilon Accounts Anusthan Fintech LLP’s ca company in mumbai , tax advisory and filing services take care of everything so you can file your tax with confidence.
FAQs
1. Is Form 16 mandatory for filing an income tax return in 2025?
No, Form 16 is not mandatory, but it simplifies ITR filing by providing all salary and TDS details in one document.
2. What should I do if I worked for multiple employers during the year?
You must collect Form 16 from each employer and consolidate income and TDS details from all forms while filing your return.
3. Can I claim deductions not mentioned in Form 16 while filing my ITR?
Yes, you can claim eligible deductions beyond those listed in Form 16, provided you have valid proof and supporting documents.
