Taxpayers, starting this month from April 1 can begin filing their Income Tax Returns (ITR) for the Assessment Year (AY) 2025-26. Salaried employees will receive Form 16 from their employers which provides details of their salary, tax deducted at source (TDS) and other key financial information for the Financial Year (FY) 2024-25. This document is essential for filing an accurate ITR and ensuring a smooth tax-filing process.
Form 16 is a certificate issued by your employer as proof that Tax Deducted at Source (TDS) has been deducted from your salary and deposited with the Income Tax Department. It contains details of the deducted tax amount and the date of submission. This document is crucial for filing your Income Tax Return (ITR) as it ensures accurate reporting of your income and taxes, minimizing the chances of errors.
Includes important details like the employer’s and employee’s information, PAN, TAN, and TDS deductions.
Provides a breakdown of your salary, taxable income, and deductions such as those under Sections 80C and 80D, helping you calculate your final taxable income.
Form 16 makes the process of filing your Income Tax Return (ITR) easier by providing all necessary income and tax details in one place. It also serves as proof of income which is often required when applying for bank loans. If excess TDS has been deducted from your salary, Form 16 helps you claim a tax refund smoothly.
These provide details of your earnings, allowances, and deductions, helping you report your income correctly.
Add up your salary, allowances (HRA, LTA, special allowance), bonuses, and perks. Then, subtract deductions like the standard deduction (Rs 50,000), HRA, and professional tax to calculate your taxable income. Remember, these deductions apply only under the Old Tax Regime, while the New Tax Regime allows only a Rs 75,000 Standard Deduction.
Check your bank statements for any additional income, such as interest or dividends, and add them to your total income.
Download Form 26AS from the Income Tax Department’s website to check tax deductions and deposits linked to your PAN. Ensure these match your income and TDS details. If you find any errors, contact your employer or bank immediately.
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