New Delhi. With the start of the new financial year, taxpayers have started preparing to file Income Tax Return (ITR). The Income Tax Department will soon notify the Income Tax Return Forms for Assessment Year 2025-26.
Companies will soon make Form 16 available to employees. This time the Income Tax Department has made many changes in Form 16. These changes will make it easier for taxpayers to file returns. Earlier, where Form 16 had limited information, now with detailed details, this process will become more transparent and easier.
Form 16 is an important document for salaried employees filing ITR, which is issued by their employer i.e. the company. Form 16 contains important information related to the employee’s salary and TDS. In the new format, information related to tax deduction, exemption and salary will now be recorded more clearly. In the new format, taxpayers will now get more detailed information. Earlier, where only basic information was given, now there will be a detailed description of tax-free allowance, how much deduction was made, and which salary benefits came under the tax purview, etc.
Form 16 has two parts
Part A contains employee and employer details, TDS amount, and details of tax deductions every quarter. Part B contains salary breakup, exemptions under section 10 (such as HRA) and deductions under sections such as 80C, 80D. Form 16 not only helps in filing tax returns, but it is also used as income proof for bank loans. If an employee has paid more tax in a year, he can claim a refund on that basis.
The Income Tax Department will soon notify the Income Tax Return Forms. Taxpayers should gather all the necessary documents in advance so that there is no problem in filing the return and they do not face any technical or document related problems.
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