ITR Form 16: Government launched digital Form 16 for taxpayers, know how it will work

Income Tax: The Income Tax Department has launched Digital Form 16 for the convenience of taxpayers. This step has been taken after the recent update of ITR Form 1 to 7. Filing tax returns will now become easier with Digital Form 16

Income Tax: The Income Tax Department has launched digital Form 16 for the convenience of taxpayers. This step has been taken after the recent update of ITR Form 1 to 7. Digital Form 16 will now make it easier to file tax returns. Form 16 already contains salary, tax deduction (TDS) and other important information.

What is Form 16?

Form 16 or 16A is a certificate issued by the employer when he deducts tax from the salary of the employees. It contains information on how much tax was deducted and deposited to the government. This document is given to the employees by the end of May every year.

How does digital Form 16 work?

Digital Form 16 is generated directly from the TRACES portal, so the information given in it is accurate and consistent. This new digital form contains complete details of tax-free allowances, deductions and salary, so that there is no confusion while filing tax.

Now taxpayers can upload this digital document directly on tax filing websites. The system automatically fills all the necessary information, which saves time and reduces the chances of mistakes. Also, if any mistake is made, the system gives an alert so that it can be corrected in advance.

Which ITR form for whom?

There are two simple forms for simple taxpayers – ITR-1 (Sahaj) and ITR-4 (Sugam).

ITR-1 (Sahaj) can be filled by those whose annual income is up to Rs 50 lakh. Those who earn money from salary, income from one house, interest and agricultural income up to a maximum of Rs 5,000.

ITR-4 (Sugam) is for individuals, HUFs i.e. Hindu Undivided Families and firms whose income is less than Rs 50 lakh and they earn from business or profession.

Last date for filing returns

For individuals who do not require audit, the last date for filing returns is 31 July. For businesses and professionals who require audit, the deadline is 31 October. Filing tax returns has now become easier, faster and safer than ever with digital Form 16.

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