Digital Form 16: If you know about Digital Form 16, you will be able to file ITR yourself

It is important for every employed taxpayer to understand the importance of Digital Form 16. This will facilitate them in filing Income Tax Return (ITR). The chances of making mistakes in this will be reduced significantly

Digital Form 16: In the last few years, many things have become digital in India. Government’s efforts have played a big role in this. This has been possible due to Digital India, Aadhaar integration, UPI and e-governance. Also, the growth of the Indian startup ecosystem has brought about a big change in the world of finance, taxation and compliance in terms of technology. Due to this, things are now happening quickly. The time taken in the process has reduced considerably.

Use of Digital Form 16

This change also includes digital tax filing instead of manual. Digital Form 16 has a big role in this. It is important for every employed taxpayer to understand the importance of Digital Form 16. This will facilitate them in filing Income Tax Return (ITR). The chances of making mistakes in this will be reduced considerably.

Benefits of Digital Form 16

Digital Form 16 is not just a digital copy of the tax certificate. It is a solution that makes income tax compliance very easy for you. Since it is generated by your employer directly from the TRACES portal, the data related to your salary, deductions and TDS is not only correct but also very reliable. It helps a lot in filing income tax returns, as there is no fear of data mismatch or wrong data.

No need to calculate tax

With the main data being digitized, filing tax becomes very easy. All you have to do is upload Digital Form 16 on the tax filing platform. Then the system immediately takes the data it needs from it. This includes your salary amount, TDS and deductions under section 80C and 80D. This means that you do not need to calculate tax with a copy and pen.

Helpful in filing ITR yourself

If any data is wrong, the system immediately informs about it. This gives you a chance to correct the data before submitting the ITR. This is especially beneficial for those who are not experts in tax matters, but want to file their income tax return themselves. The Income Tax Department is constantly trying to simplify the return filing process so that taxpayers can file returns themselves.

Quick processing of returns and refunds

One of the major advantages of digital Form 16 is that it processes returns at a very fast speed. Since the information given in it is easily matched with the information of the Income Tax Department, the tax filing platform processes the return quickly. This leads to quick ITR approval and the refund process is also completed quickly. This is beneficial for both taxpayers and the Income Tax Department.

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