ITR Filing 2025: What is Digital Form 16 and what are its features? How is it helpful in finalizing income tax return, you can read the details here one by one.
Digital Form 16 Simplifies ITR Filing: Now the Income Tax Department has introduced Digital Form 16 for the convenience of taxpayers, making it even easier to fill Income Tax Return (ITR). Through this new system, returns can be filed in a few minutes, as the necessary information is automatically filled. For those who do not have to get audited, the last date for filing ITR is 31 July 2025, while in cases like business, professionals and companies where audit is necessary, the last date for filing ITR has been kept as 31 October 2025.
What is Form 16?
Form 16 is a document that the employer gives you. It shows how much tax has been deducted from your salary. It is also called TDS certificate. This is an important document which you usually get by the end of May. This makes it easier for you to fill ITR.
Features of Digital Form 16
The new digital Form 16 is simplifying the ITR filing process, helping taxpayers to now get their work done in just a few minutes. This electronic document, which is generated directly from the TRACES portal, is a reliable and accurate alternative to the traditional Form 16.
Direct connection to TRACES: Digital Form 16 is generated directly from the TRACES portal, a trusted portal of the Income Tax Department. This ensures that all the information related to salary income, TDS and deductions given in the form is completely correct and reliable. Earlier, taxpayers had to match the data of traditional Form 16 with Form 26AS and AIS, which is no longer required with digital Form 16.
Easy tax calculation: Digital Form 16 makes tax calculations much simpler. This reduces the time taken in return filing and also speeds up the refund process.
ITR filing made easier: This is a big relief for employed people. As soon as digital Form 16 is uploaded on the Income Tax Department’s return filing website, all the necessary information like salary income, TDS and deductions are automatically filled in the ITR form, eliminating the need for manual entry.
Reduced chances of errors: The use of digital Form 16 significantly reduces the chances of errors in tax calculation, ensuring correct and accurate return filing.
Time saving: This new system makes the return filing process highly efficient, saving a lot of time for taxpayers. The last date for filing income tax returns is usually July 31, and non-filing on time may attract penalty and interest. Digital Form 16 helps in timely filing by making this process fast and error-free.
Secure and eco-friendly: Digital Form 16 is password-protected, using a standard format to protect data. This keeps financial data completely secure. Additionally, it is also eco-friendly as it is digital and does not require printing, thereby reducing paper usage.
Overall, digital Form 16 provides a significant convenience to taxpayers by making income tax filing easier, faster, safer and more reliable.
How does digital Form 16 work?
Now you will get Form 16 in digital form, which your employer creates directly from the TRACES portal. It contains complete information about your salary, tax and deductions. You can upload this digital document on the tax filing website. The system will automatically fill in your information. This will save time and reduce the chances of error.
If you want to file ITR online, then digital Form 16 can prove to be a great help for you. Now filing returns has become easier and faster than ever.
Which ITR form is for whom?
ITR Form – For whom
ITR-1 (Sahaj) Salaried people whose annual income is up to ₹ 50 lakh
ITR-4 (Sugam) Small traders or professionals whose income is up to ₹ 50 lakh
ITR-2 Those whose income is not from salary but from capital gains
ITR-5 Firms, LLPs or Co-operative Societies
ITR-6 Companies registered under the Companies Act
ITR-7 Trusts and charitable institutions
