The process of admitting income tax returns is now gaining momentum. After the Income Tax Department rebuilt the form utility, a large number of taxpayers have started finalizing their documents. This time becomes very important, especially for the employed class, as they have to get Form 16 or Form 16A from their employers.
Both these documents are not only evidence of tax deduction, but their role in the process of enters the income tax return is also central.
Role of Form 16 and Form 16A
Form 16 is a certificate that the employer issues to his employee at the end of the financial year. It contains total salary, cut tax amount and tax deposited tax.
Form 16A is for taxpayers whose income is from sources other than pay, such as bank interest, professional fees or fare. This form also includes detailed information related to tax deduction and deposit.
Both certificates should be issued from traces portal itself. The tax department does not accept the form received from any other source.
These precautions are required for taxpayers
Avoid enforcing income tax returns until the taxpayers receive the form 16 or 16A generated from traces. Must mix the information recorded in these certificates with Form 26AS or Annual Information Description (AIS).
If the difference between the form and government portal is found, then the return may be rejected or a show cause notice can also be sent by the Income Tax Department. Not only this, the process of tax refund can also be interrupted.
Accountability of TDS cutting institutions
TDS cutting employers and institutions should enter PAN numbers of all taxpayers correctly. It is also mandatory to check whether the number of PANs reported this year has been comparatively matching from the previous year.
Additionally, Form 16/16A should be generated only from traces portal. Forms prepared through any other software or medium will not be valid and this may cause the taxpayer to face problems in the future.
Incorrect reporting can lead to complications
If the information about TDS of a taxpayer is incorrectly reported, it directly affects its tax credit and refund. Many times the return gets stuck due to minor errors and the taxpayer has to go through a long process.
Therefore, not only the taxpayer needs to be vigilant, but every employer and institution cutting TDS should also report responsibly.
Returns filled deadline and formality
The Income Tax Department has set the last date for admiring income tax returns for FY 2024-25 on 31 July 2025. However, to avoid the congestion of the last time, taxpayers should get the necessary forms in time and admit the returns by matching the details.