For salaried employees, the tax filing season starts after they receive Form 16. This year, the Form 16 will be due by June 15. Form 16 is a crucial form for filing ITR for salaried individuals. It is crucial for filing ITR, serves as proof of income, and helps to claim deductions. It is meant to simplify the tax process and make it more transparent.
Salaried taxpayers should know that the IT department has made some changes to the format of Form 16.
It is much more detailed than the previous version. “It lays out explicitly about each type of component in your salary income whether they will be taxed as part of your salary or not included in your salary due to specific section 10 exemptions. It could probably act as a proper income computation, which an employee normally draws up at the year end for filing the ITR. So it would facilitate and ease out your ITR filing process,” says Ritika Nayyar, Partner, Singhania & Co.
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Easier Filing
It would facilitate filing the ITR, however, that is majorly dependent on whether accurate information is provided by the employee to the employer, which they would incorporate while carrying out either the monthly calculations or at least while finalising year-end tax deductions.
“In case the employee uses this platform, then the Form 16 that will be generated will be exhaustive enough to ease the ITR filing process. So in case taxpayers want to really benefit from it, they should try to give all details possible for their other sources of income, details of their expenses towards investments, deductions, etc,” says Nayyar.
Faster Processing
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If your form 16 closely represents the true picture of how your final ITR would turn out, specifying clearly all types of incomes during the year, your deductions, etc. it will not only help in smoothing the ITR filing process but also faster processing since, all financial numbers vis-s-vis Form 16, Form 26 and AIS would be in tandem, since the ITR would ideally replicate the information which was in the Form 16 which is also a feeder to Form 26AS and AIS.
“In case the employee uses this platform, then the Form 16 that will be generated will be exhaustive enough to ease the ITR filing process. So in case taxpayers want to really benefit from it, they should try to give all details possible for their other sources of income, details of their expenses towards investments, deductions, etc,” says Nayyar.
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Faster Processing
If your form 16 closely represents the true picture of how your final ITR would turn out, specifying clearly all types of incomes during the year, your deductions, etc. it will not only help in smoothing the ITR filing process but also faster processing since, all financial numbers vis-s-vis Form 16, Form 26 and AIS would be in tandem, since the ITR would ideally replicate the information which was in the Form 16 which is also a feeder to Form 26AS and AIS.
