As the season for filing Income Tax Returns kicks off, salaried taxpayers will soon receive Form-16 from their employers.
Form-16 holds significant importance for individuals when it comes to filing their Income Tax Returns (ITR).
Employers are now obligated to provide Form-16 to their employees,
containing comprehensive details of the tax deducted at source (TDS) on their income, as per Section 203 of the Income Tax Act.
Act Promptly: Don’t Wait for the Deadline
With companies commencing the distribution of Form-16 from today, it is likely that employees will receive it soon.
Upon receiving Form-16, it is crucial to avoid any delay in filing the income tax return.
The deadline for filing the income tax return (ITR Filing Deadline) this year is July 31, 2023, without incurring any penalties.
Waiting until the last minute should be avoided, as the surge in portal traffic during the final days can lead to complications.
Review Allowance Details
Before filing the income tax return, it is essential to thoroughly examine Form-16.
This step should be completed before initiating the filing process.
Verify if your Form-16 includes the necessary allowances such as House Rent Allowance (HRA) and Leave Travel Assistance (LTA).
Additionally, before filling out the ITR, it is crucial to check the following five details:
1) Verify the accuracy of your PAN number to ensure eligibility for claiming Income Tax Refund.
2) Check your name, address, and the company’s TAN number in Form-16.
3) Confirm that the tax deductions mentioned in Form-16 align with Form-26AS and AIS.
4) For those opting for the Old Tax Regime, examine the tax-saving deduction details.
5) If you have changed jobs during the fiscal year 2022-23, remember to collect Form-16 from your previous employer as well.
By following these steps and staying proactive, salaried individuals can streamline their income tax filing process and ensure accuracy in their returns.
