Kolkata: For the salaried Indian the process of filing Income Tax begins with receiving Form 16. If one does not have this form, one does not have the necessary information needed to file ITR. The Form 16 is a statement and certifying the tax deducted at source from the employee’s salary and it is issued by the employer to each employee. The tax deducted from the employee’s salary is deposited against his/her PAN (Permanent Account Number) and is issued under section 203 of the Income-tax Act, 1961.
The IT Department’s move to launch Digital Form 16, not only can make life easier for the average taxpayer, but is also in sync with the broader digital transformation initiatives of Digital India. It is crafted to pave the way for a straightforward and accurate ITR filing experience for a taxpayer. Let’s have a look at what is the Digital Form 16.
What is Form 16 for
All employers have to necessarily issue the TDS certificate — Form 16 in this case — to all employees from whose salary tax has been deducted. The electronic Form 16 is generated from the TRACES portal. The TRACES portal is a web-based application of the Income Tax Department. It offers an interface to all stakeholders in the TDS administration. According to the portal, deductors/collectors have to register on TRACES to create their account since it enables deductors/collectors to view TDS/TCS credit and verify PAN of taxpayers linked to the deductor/collector. According to reports, the form has been updated to include clear information about tax-exempt allowances and deductions so that confusion is eliminated or minimised while filing ITRs.
Simply upload
According to reports, a taxpayer can upload digital Form 16 onto most tax-filing websites. The advantage is that the key details will be automatically filled in. This feature can save time for the taxpayer. Moreover, it also eliminates the need for any manual calculation and by eliminating manual calculation the system also prevents the possibility of any mistakes creeping in. Reports state that the system can alert a taxpayer in case there is any discrepancy so that the taxpayer or ITR filer can address it before the ITR is submitted.
For the huge number of salaried taxpayers in India, the significance of Form 16 is immense since it is the first step in filing Income Tax Returns. In a move to simplify the return filing process, the Income Tax Department has announced the launch of Digital Form 16. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
