The Income Tax Department has launched a new Digital Form 16 to make filing Income Tax Returns (ITR) easier for everyone. This step will help taxpayers avoid confusion and save time. The digital form will also reduce errors in filing.
What is Form 16?
Form 16 is a document that shows how much tax your employer has deducted from your salary. It includes your salary details, tax deductions, and other important information. Employers must give this form to employees every year. It is usually shared by the end of May.
How Does the Digital Form 16 Work?
Now, the new Digital Form 16 is directly downloaded from the TRACES portal by employers. This ensures the data is accurate and up-to-date. It also includes better details about salary, tax-free allowances, and deductions.
You can upload this digital form directly to most tax-filing websites. The websites will automatically fill your return with the correct details from the form. This saves you from doing manual work and helps avoid errors. If something doesn’t match, the system will alert you.
Last Dates to File ITR
For individuals and salaried taxpayers (not requiring audit): July 31
For businesses and professionals (requiring audit): October 31
Which ITR Form Should You Use?
ITR-1 (Sahaj): For residents earning up to Rs 50 lakh from salary, one house property, and other sources like interest.
ITR-4 (Sugam): For individuals, HUFs, and firms (not LLPs) with income up to Rs 50 lakh from business or profession.
ITR-2: For those with income from capital gains, but not from business.
ITR-5: For firms, LLPs, and co-operative societies.
ITR-6: For companies under the Companies Act.
ITR-7: For trusts and charitable organisations.
Benefits of Digital Form 16
- Saves time
- Reduces chances of errors
- Auto-fills ITR forms
- Easy to upload
- Flags any mistakes before you submit
