Form 16 For ITR: Top Things Salaried Class Shouldn’t Miss to Get It Right

As Indian taxpayers gear up to file their income tax returns (ITR) for the financial year 2024-25 (FY25), they must start consolidating all their financial transaction reports. This will help them to stay organised and undertake a smooth ITR process and avoid any last-minute hassles.

For salaried individuals, Form 16 is one of the tax documents available that contains consolidated information of their income. Issued by the employer, this form contains the details of one’s salary structure and tax deducted at source (TDS). One needs this information to be able to claim deductions and refunds while submitting their income tax returns form.

There are two parts in Form 16: Parts A and B. The first part largely contains the details of TDS and is used to claim refunds. The second part of this form shows salary breakup. Through this, the employees can claim deductions and reduce their overall tax liability.

Hence, it is important to ensure that the details in Form 16 are accurate to avoid any inconvenience or penalty later.

1. In Part A of Form 16, make sure the PAN, salary received and TDS deducted details are correctly mentioned. Verify the Tax Deduction and Collection Account Number (TAN) of your employer mentioned in the form.

2. Carefully review part B of the form, which lists your salary components. This includes allowances like HRA, travel and conveyance. It also reflects the eligible deduction amounts under income tax rules’ sections like 80C and 80CCD (1).

3. Check overall tax liability: The form also mentioned the overall tax liability of an employer following the deductions. One must review this section carefully to avoid missing out on any tax benefits.

4. Compare With Form 26AS: Download Form 26AS from the tax portal, which summarizes all the tax credits. Make sure to compare it with Form 16 to ensure consistency in tax records.

5. If there are any errors, one must contact their employer to resolve them. The employer will need to file a corrected TDS statement to ensure the tax records are updated correctly.

6. File ITR: After reviewing all details thoroughly, use the information from Form 16 to complete your income tax return accurately and submit it for processing by the tax authorities.