Income Tax: The Income Tax Department has launched Digital Form 16 for the convenience of taxpayers. This step has been taken after the recent update of ITR Form 1 to 7. Now filing tax returns will be easier with Digital Form 16.
Income Tax: The Income Tax Department has launched Digital Form 16 for the convenience of taxpayers. This step has been taken after the recent update of ITR Form 1 to 7. Now filing tax returns will be easier with Digital Form 16. Salary, tax deduction (TDS) and other important information are already present in Form 16.
What is Form 16?
Form 16 or 16A is a certificate issued by the employer when he deducts tax from the salary of the employees. It contains information on how much tax was deducted and deposited to the government. This document is given to the employees by the end of May every year.
How does digital Form 16 work?
Digital Form 16 is generated directly from the TRACES portal, so the information given in it is accurate and consistent. This new digital form contains complete details of tax-free allowances, deductions and salary, so that there is no confusion while filing tax.
Now taxpayers can upload this digital document directly on tax filing websites. The system automatically fills all the necessary information, which saves time and reduces the chances of mistakes. Also, if any mistake is made, the system gives an alert so that it can be corrected in advance.
Which ITR form for whom?
There are two simple forms for simple taxpayers – ITR-1 (Sahaj) and ITR-4 (Sugam).
ITR-1 (Sahaj) can be filled by those whose annual income is up to Rs 50 lakh. Those who earn money from salary, income from one house, interest and agricultural income up to a maximum of Rs 5,000.
ITR-4 (Sugam) is for individuals, HUFs i.e. Hindu Undivided Families and firms whose income is less than Rs 50 lakh and they earn from business or profession.
Last date for filing return
For individuals who do not have to get audit done, the last date for filing returns is 31 July. At the same time, for businesses and professionals who require audit, this deadline is 31 October. Filing tax returns with digital Form 16 has now become easier, faster and safer than ever.
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