Digital Form 16 is generated directly from the TRACES portal. It is an electronic version of the traditional Form 16. TRACES is an income tax portal, which makes it very reliable. This means that the data of salary income, TDS and deductions in digital Form 16 will be completely correct and reliable.
There is good news for the employed people. Now they will not face any problem in filing income tax returns. Digital form will make their work very easy. Actually, Form 16 is necessary for the employed people to file returns. It contains information like salary income, TDS and deductions of the employee. Now employers are going to issue digital Form 16 to their employees. Let us know about this in detail.
Generated directly from TRACES
Digital Form 16 is generated directly from the TRACES portal. It is an electronic version of the traditional Form 16. TRACES is an income tax portal, which makes it very reliable. This means that the data of salary income, TDS and deductions in Digital Form 16 will be completely correct and reliable. The data included in the traditional Form 16 had to be matched with Form 26AS and AIS.
The data will be filled in the form as soon as you upload it
Now working people can easily file ITR. They have to go to the return filing website of the Income Tax Department. Then, they have to choose the right ITR form for themselves. As soon as you upload the digital Form 16, all the information will automatically appear in the ITR form. This will include information like salary income, TDS and deductions.
There will be no mistake even in the calculation of tax
Tax calculation will also be done easily with digital Form 16. This will save a lot of time spent in return filing. Return processing will also be quick. This will also not take much time for the refund to come. The last date for filing income tax return is usually 31 July. Sometimes this date is extended if needed. During Covid, it had extended the deadline for filing returns. Filing returns after this date attracts penalty and interest on tax.
Completely secure as it is password protected
There is no fear of misuse of digital Form 16. This is because it is password protected. A standard format is used for its password. This keeps your financial data safe. Another advantage is that its use is also beneficial from the environmental point of view. Since the document is digital, there is no need to print it. This reduces the use of paper.
