As the Assessment Year (AY) 2025–26 approaches, salaried individuals will soon begin receiving Form 16 from their employers. This crucial tax document is essential for initiating the Income Tax Return (ITR) filing process and is now widely available in a digital format, making online filing more convenient.

What is Form 16?

Form 16 is a statutory Tax Deducted at Source (TDS) certificate issued under Section 203 of the Income Tax Act, 1961. It summarizes the total salary paid by the employer and the tax deducted at source during the financial year. As per the Central Board of Direct Taxes (CBDT) guidelines, employers must issue Form 16 to all salaried employees by June 15 of every year.

Form 16 is divided into two parts:

• Part A contains:

  • Employer’s and employee’s PAN and TAN

  • Duration of employment

  • Details of TDS deposited with the government

• Part B includes:

  • Detailed salary breakup

  • Exemptions under various sections

  • Deductions claimed under Chapter VI-A

  • Taxable income after deductions

How to Access Digital Form 16

Form 16 can be obtained through two primary sources:

1. Through Employers:
   Most companies share Form 16 via email or provide access through internal HR/payroll systems.

2. Via TRACES Portal:

   • Visit: https://www.tdscpc.gov.in

   • Log in using your PAN credentials

   • Navigate to the “View Form 26AS” section

   • Note: You cannot download the complete Form 16 here, but you can verify TDS details as submitted by your employer.

Using Form 16 for ITR Filing

Once you receive Form 16, it should be used to accurately fill your ITR:

• Cross-verify the details in Form 16 with Form 26AS and the Annual Information Statement (AIS) for consistency.

• Use Part B to correctly enter salary income, exemptions, and deductions in the ITR.

• On the Income Tax e-filing portal, you can either:

  • Manually enter the values from Form 16, or

  • Validate pre-filled data on the portal using Form 16 to avoid errors.

CBDT recommends ensuring that PAN and TDS amounts match across all documents to prevent delays or discrepancies during ITR processing.

Filing ITR Online with Digital Form 16

Using digital tax filing platforms makes ITR submission easier and more efficient. These platforms often auto-fetch details such as salary structure, TDS, and deductions from Form 16 and match them with the Income Tax Department’s records. This pre-validation step helps reduce mismatches, avoiding scrutiny or income tax notices.

After filing, taxpayers can e-verify their return using:

• Aadhaar OTP

• Net banking, or

• Sending a signed ITR-V to the Centralised Processing Centre (CPC)

Conclusion

With the increasing adoption of digital tools, Form 16 in electronic format has streamlined the tax filing experience. Salaried taxpayers can now enjoy a faster, more accurate, and transparent ITR filing process. By cross-checking all relevant data and using available platforms wisely, they can ensure compliance and minimize errors.