- By Shreyansh Mangla
- Tue, 26 Aug 2025 06:44 PM (IST)
- Source:JND
ITR Filing AY 2025-26: Salaried individuals, or those who receive a fixed monthly income from an organisation, are advised to secure their Form 16 for filing their annual income, a crucial part of ITR submission. The Income Tax Department has set the deadline for filing the Income Tax Return for AY 2025-26 as September 15, 2025.
What is Form 16?
Form 16 is a certificate provided by your employer that shows a monthly breakdown of your salary and other deductions made by your employer. While one needs to report all sources of income when filing an ITR, Form 16 is specifically designed to provide key information about your monthly salary.
Form 16 is composed of two parts:
Part A: This provides a summary of all salary components paid and all taxes deducted from your salary.
Part B: This offers a detailed breakdown of various components of your salary, including allowances, exemptions and deductions.
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Process of Form 16 Generation
Form 16 can be generated by employers through a government website called the TRACES (TDS Reconciliation Analysis and Correction Enabling System) portal, based on quarterly tax returns.
How to Get Your Form 16 Online
Step 1: Visit the TRACES portal at https://www.tdscpc.gov.in/ and log in with your username, password, and TAN.
Step 2: Find the download section. Click on the "Downloads" tab and then select "Form 16." You can choose to download it for a single account or for multiple accounts at once.
Step 3: Confirm all the information. Double-check all the details of the person in charge of your TRACES form.
Step 4: Enter the receipt number from the TDS Tax Return for the last quarter (Q4).
Step 5: Provide details of the tax payment slip, PAN numbers, and the total tax deducted for three different employees.
Step 6: After sending the request, the form will be ready to download in a simple text file format (.txt) within 24 to 48 hours.
Step 7: Use the TRACES portal tool to convert your text file into a PDF. Once converted, the authorized person needs to sign it either by hand or with a digital signature.
Points to Keep in Mind
Employer's Obligation: An employer must provide Form 16 by June 15 every year. If they fail to do so, they will have to pay a penalty of Rs 500 for each day of delay.
Extra Benefits/Perks: If your employer provides extra benefits or perks, they must also provide a separate Form 12BA, which lists all the benefits and their value in detail.
Check Your Details: Always cross-check the information in your Form 16 with the information already filed in your income tax return. You must ensure that every detail matches; otherwise, the ITR will not be considered valid.
Multiple Jobs: If you have worked for two or more employers in one financial year, you need to collect Form 16 from each of them and include all of them in the ITR filed.
Final Check: Form 16 is an important proof of your income, so you should compare it with Form 26AS. Checking Form 16 against Form 26AS is an essential part of the tax filing process because it helps you verify that the taxes you have paid are properly credited to your account. However, like any document, it is not foolproof, and you should always be vigilant about making any necessary corrections by reaching out to your employers/deductors.