Digital Form 16 for FY 2024–25: What salaried taxpayers need to know before filing returns

Salaried individuals will shortly begin receiving Form 16 from their employers to initiate the income tax return (ITR) filing process for the Assessment Year 2025–26. This essential tax document is also available in a digital format, which can be accessed and used conveniently for online return submission.

What is Form 16

Form 16 is a statutory TDS certificate issued under Section 203 of the Income Tax Act, 1961. It outlines the total salary paid by the employer and tax deducted at source (TDS) during the financial year. As per CBDT rules, employers must issue Form 16 to all salaried employees by June 15 of every year.

Form 16 is split into two key sections:

Part A: Includes the employer’s and employee’s PAN, TAN, duration of employment, and details of TDS deposited with the government.

Part B: A detailed breakup of salary components, exemptions under various sections, deductions claimed under Chapter VI-A, and the resultant taxable income.

Where and how to access Digital Form 16

The Central Board of Direct Taxes (CBDT) allows Form 16 to be accessed via two main routes:

Through Employers: Most companies send Form 16 by email or make it available via their internal HR/payroll platforms.

Via TRACES Portal:

Visit https://www.tdscpc.gov.in.

Log in using your PAN credentials (if applicable).

Navigate to the “View Form 26AS” section to verify TDS details. Note: The complete Form 16 is not downloadable here, but TDS records from employers can be cross-checked for accuracy.

How to use Form 16 for ITR filing

After receiving Form 16:

Cross-verify all figures with your Form 26AS and Annual Information Statement (AIS) to ensure consistency.

Use Part B to enter salary, exemptions, and deductions accurately in your ITR form.

If using the Income Tax e-filing portal, you can either input values manually or validate pre-filled data against Form 16.

CBDT advises all taxpayers to ensure TDS figures and PAN details match across documents to avoid errors and delays in processing.

Filing ITR online with Digital Form 16

Using online tax filing platforms can greatly simplify the process. These platforms auto-fetch Form 16 details such as salary components, TDS, and deductions, enabling seamless validation with the Income Tax Department’s records. This pre-validation step helps eliminate mismatches and reduces the chance of getting income tax notices.

After submission, taxpayers can e-verify their return using Aadhaar OTP, net banking, or by sending a signed ITR-V to the Centralised Processing Centre. The shift to digital filing has made tax compliance faster, more accurate, and far more convenient for salaried individuals.