News India Live, Digital Desk: ITR Filing 2025: The process of filing income tax for salaried Indians begins by receiving Form 16. If no one has this form, he does not have the necessary information to file ITR. Form 16 is a description and certifies the tax deducted at the source from the employee’s salary and is issued by the employer to each employee. The employee’s salary is cut and deposited against his PAN (permanent account number) and issued under Section 203 of the Income Tax Act, 1961.
The Income Tax Department’s move to launch Digital Form 16 can not only make life easier for the average taxpayer, but it also keeps pace with the widespread digital change initiatives of Digital India. It has been designed to pave the way for a simple and accurate ITR filing experience for the taxpayer. Let’s take a look at what is the digital form 16.
What is Form 16 for?
It is mandatory for all employers to issue TDS Certificate to all employees – in this case Form 16 – whose salary has been deducted from salary. The electronic form 16 traces are generated from the portal. Traces portal is a web-based application of the Income Tax Department. This provides an interface to all stakeholders in TDS administration. According to the portal, the cutters/collectors must register on traces to create their own account as it enables the cutters/collector to see TDS/TCS credit and verify the PAN of taxpayers attached to the cutters/collectors. According to reports, the form has been updated to include clear information about tax-free allowances and deductions to eliminate or reduce confusion when filing ITRs.
Just upload
According to the report, the taxpayer can upload digital form 16 on most tax-filing websites. The advantage of this is that the main details will be filled automatically. This facility can save time for the taxpayer. In addition, it also eliminates the need for any manual calculation and the system also prevents the possibility of any mistake by eliminating the manual calculation. The report said that the system can alert the taxpayer in case of any discrepancy so that the taxpayer or ITR filer can fix it before depositing the ITR.
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