Updated 19 May 2025 at 16:30 IST
Filing Income Tax Return (ITR) has now become easier as the Digital Form 16 has made things easier.
The Digital Form 16, which is a digital document issued by the employer, contains all the necessary salary and tax deduction information ready to go straight into tax-filing platforms.
It is an electronic version of the traditional Form 16, which is generated directly from the TRACES portal, managed by the Income Tax Department. Filing this form means that all your salary details, TDS, and tax-saving deductions are recorded accurately.
Since this form is procured directly from official records, there is less chance of errors and mismatches in returns.
It can also be simply uploaded to most of the tax-filing websites, and the system fills in key details like salary, TDS, and deductions under sections like 80 C and 80 D, automatically, so that the taxpayer does not have to do manual calculations.
Additionally, this also saves time and speeds up refund processing, as the information is already in the correct format.
Digital Form 16s are also safe as they are password-protected and stored securely using globally recognized data protection standards.
Further, there is also an environmental benefit to all this , wherein by adopting digital documentation, paper waste gets reduced and a more sustainable practice gets adopted.
Published 19 May 2025 at 16:30 IST