ITR Filing FY 2025-26: Why Form 16 Matters Before You File

As the Income Tax Department has enabled online filing utilities for FY 2025-26, most salaried individuals are still not filing their ITR, as they are waiting for one key document – Form 16.

Form 16 is a key document for salaried taxpayers, containing details of salary, deductions, exemptions, TDS, and tax calculations.

Employers must issue Form 16 by 15 June of the financial year following the year in which salary was paid and TDS was deducted.

Form 16 helps verify TDS details and ensures accurate ITR filing. Employees can obtain it from their employer or company payroll portal once it is issued.

Divya Baweja, Partner, Deloitte India, said that employees who changed jobs during the year may receive multiple Form 16s from different employers. Part A is generated through TRACES, while Part B is prepared and issued by the employer.

Reading Form 16 is important for preparing and filing income-tax returns. Form 16 has two parts: Part A and Part B.

Form 16, Part A, is a TDS certificate which is issued by the employer, and it includes details of the tax deducted at source (TDS) from an employee’s salary and deposited with the government during the financial year.

It also contains information about the salary paid in each quarter. If an individual has worked with more than one employer during the financial year, separate Part A forms will be issued by each employer.

Key details mentioned in Form 16 Part A:

• Employee’s name, address, and PAN
• Employer’s name, address, PAN, and TAN
• Period of employment with the employer
• Relevant assessment year
• Quarterly details of tax deducted and deposited with the government
• TDS payment acknowledgement number

Form 16 Part B contains a detailed salary breakup, exemptions, deductions, and taxable income calculation. It also includes deductions claimed under Sections 80C, 80D, and 80CCD.

Key details mentioned in Form 16 Part B:

• Information relating to tax payable or refund due
• Detailed salary breakup, including components such as HRA, LTA, gratuity, leave encashment, and pension
• Deductions claimed under Chapter VI-A, including investments in PPF, NSC, and other eligible instruments
• Details of education cess and surcharge, if applicable

ITR can be filed without Form 16, but taxpayers should carefully verify all income and tax details before filing.