ITR Filing 2025: Whats New in Form 16 And Why It Is Important; Check Eligibility And How To Download

New Form 16 Download: If you are a salaried worker, you may have most likely come throughout Form 16 whilst submitting your source of revenue tax go back. It’s a key record that serves as evidence that your employer has deducted and deposited your taxes with the federal government. Understanding Form 16 and who’s eligible for it is necessary for each workers and employers. Before you start the ITR submitting 2025 procedure, make sure you have all important paperwork able—Form 16 being some of the vital for salaried people. 

What’s New In Form 16?

This yr, the layout of Form 16 has been revised. The new layout is extra detailed and provides clearer knowledge than sooner than. Previously, it integrated simplest elementary wage and tax main points, however now it supplies complete information on tax-free allowances, deductions, and taxable wage. These adjustments purpose to make the Income Tax Return (ITR) submitting procedure more straightforward and extra clear.

What Is Form 16?

Form 16 is a the most important record issued via an employer to an worker. It comprises main points of the worker’s wage and the Tax Deducted at Source (TDS). This record performs a key position in submitting ITR and serves as evidence that the employer has deducted TDS and deposited it with the Income Tax Department. Even in the event you transfer jobs throughout the monetary yr, it’s necessary to gather Form 16 from every employer. Form 16 is split into two portions – Part A and Part B.

Form 16 – Part A

Part A comprises quarterly main points of tax deducted and deposited via the employer. It options the worker’s title, deal with, PAN, and the employer’s Tax Deduction Account Number (TAN) and PAN. This segment is helping workers examine the taxes deducted from their wage slips.

Form 16 – Part B

Part B supplies an in depth breakdown of the worker’s wage and the exemptions claimed beneath the Income Tax Act. It comprises exemptions beneath Section 10 (corresponding to HRA) and deductions beneath Sections 80C and 80D (like lifestyles insurance coverage, medical health insurance, and PPF). This segment could be very imp whilst submitting the ITR.

Why Is Form 16 Crucial?

Form 16 now not simplest simplifies the ITR submitting procedure however could also be very important for making use of for loans. Banks and monetary establishments imagine it legitimate evidence of source of revenue. If an worker has paid extra TDS, Form 16 can be used to assert a reimbursement.

Form 16 Eligibility:

If a salaried particular person’s source of revenue is taxable, the employer will have to deduct TDS and provides them Form 16. But if the source of revenue is underneath the elemental exemption restrict, no TDS is deducted, and the employer does not wish to factor Form 16.

How To Download Form-16

Step 1: Visit the TRACES site (www.tdscpc.gov.in) and log in the use of your PAN (User ID) and password, or check in if you are a brand new person.

Step 2: Go to the ‘Downloads’ tab and choose ‘Form 16’ from the dropdown menu.

Step 3: Choose the shape sort and monetary yr for which you wish to have Form 16.

Step 4: Verify PAN main points, input the TDS receipt quantity, date of TDS deduction, and general tax deducted.

Step 5: Submit the request and obtain Form 16 as soon as it is to be had beneath the ‘Downloads’ tab.