As the income tax filing season for the assessment year 2025-26 approaches, salaried employees are eagerly awaiting their Form 16—a crucial document for filing Income Tax Returns (ITR). Employers are required to issue Form 16 by June 15, 2025, following the conclusion of the financial year 2024-25. This certificate provides a detailed summary of salary earned, tax deducted at source (TDS), and exemptions claimed during the fiscal year.
What is Form 16?
Form 16 is divided into two parts:
- Part A: Contains essential details such as the employer’s and employee’s Permanent Account Number (PAN), Tax Deduction and Collection Account Number (TAN), and the employment period. It also summarizes the TDS deducted and deposited.
- Part B: Offers a breakdown of the employee’s salary structure, including taxable income, exemptions like House Rent Allowance (HRA) and Leave Travel Allowance (LTA), and deductions under sections such as 80C and 80D.
Why is Form 16 Important?
Form 16 simplifies the ITR filing process by ensuring accuracy in reporting income and tax deductions. It is also essential for claiming tax refunds, as it serves as proof of excess TDS paid. Additionally, financial institutions often require Form 16 for loan applications as evidence of income.
What to Do If Form 16 is Delayed?
In case of delays, employees can still file their ITR using alternative documents such as salary slips, Form 26AS, and the Annual Information Statement (AIS). These records provide a comprehensive view of financial activities and help verify income and deductions.
Employers are advised to adhere to the deadline to avoid penalties, ensuring a smooth tax filing experience for their employees. As the deadline approaches, individuals are encouraged to cross-check their financial records and prepare for timely submission of their ITR.
