Salaried employees who file their income tax returns (ITRs) every year should be aware that the tax department has introduced some changes in the format of Form 16 related to tax deduction and perquisites. The changes effected in the Form 16 format will ensure that the information about different taxes, deductions, and exemptions on salary is put more clearly. So if you have trouble filing taxes, the new Form 16 can make things easier.
What is Form 16?
Form 16 is a document issued by companies to their employees. This tax document is proof that the employer has deposited tax deducted at source (TDS) with the Income Tax Department on salary payments to their employees. Form 16 has details about the income earned, tax deducted, and other deductions allowed under the Income Tax Act.
Also read: ITR Filing: 5 major income tax provisions taxpayers need to know in 2025
Form 16 has two parts: Part A & Part B
Part A has:
-Employer details (PAN/TAN)
-How much TDS was deducted
This is generated from the TRACES portal
Part B has:
-Complete breakup of your salary
-Under which sections did you get tax exemption (like 80C, 80D, 80E, 80G etc.)
Why are these changes necessary?
The purpose of these changes is to ensure that taxpayers get correct and complete information so that they do not make any mistakes while filing their ITR. This will not only make paying taxes easier but will also reduce the chances of getting a notice.
So when you sit down to fill ITR this time, read Form 16 carefully. These new changes can save you time, mistakes and tension.
What exactly has changed in Form 16?
Now Form 16 will have more details. Earlier, it used to have only basic information, but now you will get more detailed information. Now taxpayers will be able to know which allowances are tax exempted, how much deduction was made, and which benefits in your salary came under the tax net. This will reduce confusion while filing ITR and everything will be clear.
Also read: ITR Filing 2025: What is deadline to file income tax return this year?
When will these changes be implemented? » Read More
