New Delhi. The Income Tax Department has done the change in the format of Form-16 (Change Format form -16) to further simplify the process of making income tax returns for the financial year 2024-25 (Assessment Year 2025-26). The government wants people not to have confusion while paying tax and the mistakes are reduced. That is why Form-16 is made in so much detail. If you are a salary, then start preparing to file returns as soon as you get Form-16 in June.
What is change
Earlier, Form-16 used to have only basic information, but now it will show tax-free allowances, deductions, and taxable parts of salary separately. Meaning, you will know how much part of your salary comes under the tax net and how much has survived.
Some facilities provided by the company, such as free home will now be taxed. That is, if your employer gives you a house for free, then you may have to pay tax on its value. These changes have become effective since 20 February 2025 and will be applicable for the financial year 2024-25.
How long will Form-16 get?
Your company will have to release Form-16 by 15 June 2025. That is why most people start filling tax returns in June itself.
What will you see in the new form?
1. Every small and big part of the salary will be told separately.
2. Full details of tax-free allowances and tax facilities.
3. List of cuttings like Section 80C (PPF, LIC), 80D (Health Insurance), 80E (Education Loan).
4. PAN and TAN numbers of the company will also be in form.
Why is Form-16 so important
– This form will be your biggest support while filing tax returns.
– Even while taking a loan, banks consider it a proof of your income.
– If you have cut more TDS from the need, then with the help of this form you can also ask for refund.
How to prepare?
-Collect your Form-16, bank statement, investment proof in advance.
– Go to the Income Tax website and check your form 26AS (here you get complete details of TDS).
– Update your bank account number and IFSC code portal, so that the refund is rapidly.
– Remember, by 31 July 2025 you have to file ITR.
