ITR Filing 2025: Here Are The Key Changes In Form 16 You Shouldn't Miss

With the new financial year underway from April 1, individuals preparing to file their Income Tax Returns (ITR) for the previous year should be aware of some important updates. The Income Tax Department is expected to soon release updated ITR forms for the Financial Year 2024–25 (Assessment Year 2025–26), along with revised guidelines for filing.

One of the essential documents for salaried individuals during the ITR process is Form 16, a certificate issued by employers that details the salary paid and the tax deducted at source (TDS). It acts as a consolidated statement, verifying that taxes have been correctly deducted and deposited with the government on behalf of the employee.

Changed Jobs? Collect All Your Form 16s

If you switched jobs during the financial year, it’s important to obtain Form 16 from each employer. This ensures complete and accurate reporting of your income and taxes paid.

Breakdown of Form 16: Part A and Part B

Part A of Form 16 includes personal details such as your name, PAN, and your employer’s TAN, along with a quarterly summary of taxes deducted and deposited. This section can be cross-verified with your salary slips.

Part B provides a detailed breakup of your salary, exemptions under Section 10 (like House Rent Allowance and travel allowances), and deductions claimed under sections such as 80C and 80D. This includes investments in instruments like PPF, LIC premiums, and health insurance.

This comprehensive information makes it easier for taxpayers to accurately file their returns and claim any eligible refunds.

Also Read: Zomato Q4 Results: Net Profit Plunges 77% To Rs 39 Crore Despite Solid Annual Growth

What’s New In Form 16 This Year?

As part of ongoing reforms, Form 16 is being enhanced to offer greater transparency. The revised version will now offer clearer insight into tax-free components, perquisites, and the total amount of tax deducted. This granular structure aims to simplify the filing process and help taxpayers better understand their income and deductions.

While the new ITR forms are expected to be released soon, taxpayers are advised to keep all necessary documents handy and stay updated with any announcements from the Income Tax Department to avoid last-minute hassles.

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