Latest news with #Form16
Time of India
2 days ago
- Business
- Time of India
ITR e-filing AY 2025-25: What is Annual Information Statement (AIS) and how is it different from Form 26AS? Top points for taxpayers
ITR filing FY 2024-25: When filing your income tax return for FY 2024-25 (AY 2025-26), the Annual Information Statement is an important document that every taxpayer should be aware of. Tired of too many ads? go ad free now Introduced a few years ago, the Annual Information Statement is a helpful document for transparent and easy tax compliance. The Annual Information Statement serves as a crucial document that displays comprehensive details of a taxpayer's financial transactions throughout the fiscal year. The Annual Information Statement (AIS) and Form 26AS are tools provided by the Income Tax Department to help taxpayers with accurate tax reporting. Individuals paying taxes have the ability to cross-check their income sources and ensure they align with their Form 16, Form 16A or personal financial records. The AIS system enables taxpayers to identify any inconsistencies in their declared income or tax remittances. Also Read | As AIS effectively records the majority of income sources, it aids in preventing omissions and understatements, thereby reducing the likelihood of tax avoidance penalties or evasion charges. To view their AIS, taxpayers need to visit the official e-filing website at and sign in with their account details. The statement is accessible under the 'Services' section, where users can select 'Annual Information Statement'. Users have the option to obtain their yearly statement in either PDF or JSON formats for their preferred financial year. What is the Annual Information Statement (AIS)? Sudhakar Sethuraman, Partner, Deloitte India explains that AIS is a comprehensive report capturing a taxpayer's financial transactions during a financial year such as interest income, dividends, securities transactions, and foreign remittances, offering a broader view of income sources. These transactions are reported in AIS even if there is no associated tax deduction/ collection at source (TDS/TCS). AIS allows the taxpayer to provide feedback on the transactions reported therein. The tax office considers the feedback provided by the taxpayer and AIS is updated to show original and modified values based on this feedback. There is also a facility to view all feedback provided in the form of 'AIS Consolidated Feedback' file which can be downloaded from the portal. As AIS provides securities-related transactions, it aids in comparison of the information reported in AIS with the information provided by the demat account. Securities transactions can be downloaded into excel and can be used for uploading into tax returns in the relevant sections (capital gains/business income). How is AIS different from Form 26AS? Sudhakar Sethuraman explains that unlike AIS, Form 26AS is more oriented towards TDS/TCS. Tired of too many ads? go ad free now It provides a list of incomes (such as salary, interest), TDS/TCS on these and types of tax payments such as advance tax. 'Form 26AS helps taxpayers verify the taxes paid in various forms (such as TDS, TCS, advance tax, self-assessment tax) and the total tax credit available for the relevant financial year,' Sudhakar Sethuraman tells TOI. In short, AIS gives a detailed overview of income and transactions, while Form 26AS focuses on taxes. Also Read |
Indian Express
2 days ago
- Business
- Indian Express
Income Tax Returns FY 2024-25 (AY 2025-26): Key differences between Form 16, 16A, and 16B
Tax filing season begins for the financial year 2024-25, and the assessment year 2025-26 has officially commenced, with salaried employees in India having received their Form 16 documentation. There are new changes in Form 16 that have been announced in the Union Budget 2025 to improve transparency by giving a detailed explanation of compensation components, tax-exempt allowances, and deductions, as well as which salary perks are subject to taxation. Form 16 is a TDS (Tax Deducted at Source) certificate provided by employers to salaried employees, allowing them to accurately submit their Income Tax Returns (ITR) and comply with tax requirements. READ: ITR Filing Last Date FY 2024-25 (AY 2025-26): Updated deadline for filing income tax returns in India for salaried individuals, companies, and more It's also important to note that employees who have changed employment throughout the fiscal year must obtain Form 16 from each employer. Form 16, along with its two components: Form 16A and Form 16B, are certificates issued as proof that Tax Deducted at Source (TDS) has been collected and deposited with the government. Employers give Form 16 to salaried employees for TDS on their salaries, whereas Form 16A is for TDS on non-salary income, like interest, commission, or rent. Form 16B is for property deals under Section 194-IA of the Income Tax Act. The buyer hands this form to the seller after taking out TDS on the sale of immovable property. Source: Clear Tax
News18
3 days ago
- Business
- News18
Is Form 16 Sufficient For Filing ITR This Year? Here's What It Doesn't Tell You
Last Updated: Income Tax Return 2025: Form 16 summarises salary income and TDS but excludes other incomes like interest, freelancing, capital gains, rental income, or extra deductions. Form 16 & ITR Filing 2025: It's June 18. You must have received Form 16 from your employer to file the income tax return (ITR) for the assessment year 2025-26 (FY 2024-25). It neatly summarises your salary income, the tax deducted at source (TDS) by your employer, and the deductions you declared through them. However, is it sufficient to file the ITR? The answer is 'No'. Here's why, and what all you need to refer to before filing your ITR this year. What Is Form 16, and What It Doesn't Tell You? Form 16 is like a report card from your employer about your salary. It doesn't account for any financial activity outside that employer-employee relationship. Failing to report additional income or claim eligible deductions not processed via your salary can result in underpaying tax (inviting penalties and interest) or overpaying (leaving your hard-earned money with the IT department). Here's What Form 16 Does Not Tell You: 1. Income From Other Sources: Interest Income: Form 16 does not show interest you earned from fixed deposits (FDs), savings accounts (above the exempt limit of Rs 10,000, and Rs 50,000 for seniors), recurring deposits (RDs), or bonds. Banks deduct TDS (usually 10%) if interest exceeds Rs 40,000 (Rs 50,000 for seniors), but you must report all interest income, even below TDS thresholds. 2. Capital Gains (Stocks, Crypto, Property, Mutual Funds) Stock Market Profits: Sold shares (listed or unlisted) and made a profit? Short-term or long-term capital gains tax applies. Your Form 16 is oblivious to your trading activities. Crypto Gains/Losses: Income from Virtual Digital Assets (VDAs) like cryptocurrencies or NFTs is taxable. These gains (or losses to set off) are never part of your Form 16. Property/Mutual Funds: Profits from selling a house, land, or redeeming mutual fund units (especially debt funds or equity funds sold before the qualifying period) generate capital gains you must report separately. 3. Rental Income & Second Home Implications Rent Received: If you own a property and receive rent, this is taxable income under 'Income from House Property'. Form 16 doesn't capture this. Deemed Rent on Second Home: Own more than one residential property and don't earn rent from the additional one(s)? The income tax department still considers a 'Deemed Rental Income' (based on municipal value, etc.) for the property not designated as your self-occupied one. This tax liability won't be on Form 16. 4. Deductions You Claimed Directly (Not via Salary): Health Insurance (Sec 80D): Form 16 only shows deductions you submitted proofs for to your employer. However, it does not show the premiums you paid for yourself, parents (senior or not), or family outside your employer's payroll deduction system. Charitable Donations (Sec 80G): Have you made donations to eligible charities or institutions? You can claim deductions, but only if you report them in your ITR. Form 16 will not reflect these. Education Loan Interest (Sec 80E): Paid interest on an education loan for yourself, spouse, or children? Claim it directly in your ITR; it's not on Form 16. Deduction for Disabled Dependent (Sec 80DD/80U) / Medical Treatment (Sec 80DDB): These specific deductions also need to be claimed directly if not processed via salary. 5. Mismatches with AIS/Form 26AS & TDS Errors: The AIS/26AS Reality Check: Form 16 is your employer's version of events. However, the record of all reported financial transactions linked to your PAN is your Annual Information Statement (AIS) and Form 26AS. These show: TDS deducted by all deductors (banks, clients, tenants, stock brokers etc.), not just your employer. Reported high-value transactions (mutual fund purchases/sales, property deals, large deposits etc.). Interest income reported by banks. Tax payments (advance tax, self-assessment tax). Form 16 vs. AIS/26AS Mismatch: Your employer might have reported lower TDS in Form 16 than what's reflected in AIS/26AS, or vice-versa. There could be delays in reporting. Always reconcile Form 16 TDS details with your AIS/26AS. Deductions Missing in Form 16: Did you submit HRA documents late? Or did your employer overlook some declared deductions? Form 16 might not show them, but you can still claim them in your ITR if eligible, supported by proofs. How To Make Sure You Have Reported All Your Incomes In ITR? 1. Download Your AIS & Form 26AS: Log in to the Income Tax e-filing portal ( Find and download your AIS (Comprehensive view) and Form 26AS (Tax Credit view) for FY 2024-25 (AY 2025-26). 2. Compare Salary TDS: Match the total TDS amount and the Employer's TAN (Tax Deduction Account Number) shown in Form 16 Part B with the corresponding entries in your AIS/Form 26AS. Interest income reported by banks (even if no TDS was deducted). TDS deducted by banks on FDs/RDs. TDS deducted by clients on freelance payments (if any). TDS deducted by tenants on rent (if applicable and above threshold). Details of capital gains transactions reported by brokers. Details of property purchases/sales. 4. Note Discrepancies: If you find differences between Form 16 and AIS/26AS, or see income/TDS you didn't account for, investigate. Contact your employer or the relevant deductor (bank, broker, tenant) if necessary to resolve mismatches before filing. What To Do To Avoid Any Future Income Tax Notice? Gather All Income Documents: Salary slips, Form 16, bank statements (for interest), capital gains statements from brokers/depositories, rent agreements (if landlord), freelance invoices/payment proofs. Download & Review AIS/Form 26AS: Treat this as your single source of truth for reported transactions. Reconcile meticulously with Form 16. Account for All Income: Salary + Interest + Capital Gains + Rent + Freelance + Any other income. Don't assume Form 16 covers it. Claim All Eligible Deductions: List deductions claimed via employer and those paid directly (Health Ins, Donations, Loan Interest, etc.). Have proofs ready. Verify Pre-filled Data: The ITR form pre-fills data from AIS. Scrutinise it. Is it accurate? Complete? Does it match your records? top videos View all File on Time: Avoid last-minute rush and potential errors. The deadline for salaried individuals is September 15, 2025. Employers are mandated to provide Form 16 by June 15. So, if you have not yet received your Form 16, you can download it from your company's HR portal. About the Author Mohammad Haris Haris is Deputy News Editor (Business) at He writes on various issues related to markets, economy and companies. Having a decade of experience in financial journalism, Haris has been previously More Stay updated with all the latest business news, including market trends, stock updates, tax, IPO, banking finance, real estate, savings and investments. Get in-depth analysis, expert opinions, and real-time updates—only on News18. Also Download the News18 App to stay updated! tags : income tax income tax return ITR filing Location : New Delhi, India, India First Published: June 18, 2025, 13:19 IST News business » tax Is Form 16 Sufficient For Filing ITR This Year? Here's What It Doesn't Tell You
Time of India
4 days ago
- Business
- Time of India
ITR filing FY 2024-25: Do you need to file your income tax return if TDS has been deducted? Explained
Tax Deducted at Source or TDS is the tax that is deducted before making a payment to the recipient. (AI image) ITR filing FY 2024-25: It's that time of the year when every taxpayer gets together documents to file their income tax return. This year the last date of file the income tax return has been extended from July 31 to September 15, 2025. One common query in the minds of taxpayers is - if TDS or Tax Deducted At Source has been cut, is there a need to file the income tax return? The clear answer to that is - yes, it is necessary for you to file your ITR. Tax Deducted at Source or TDS is the tax that is deducted before making a payment to the recipient. The government collects a specified percentage of tax directly from various income sources such as salary, interest earnings or rental payments. The tax amount is withheld before the recipient receives the payment, and the deducted sum is subsequently transferred to the government. Also Read | ITR filing FY 2024-25: Several changes in Form 16! Top things salaried taxpayers shouldn't miss Amarpal Chadha, Tax Partner, EY India elaborates, 'Many taxpayers believe that if TDS has already been deducted from their income, or if their employer has issued a Form 16, their compliance obligations are complete and filing an Income Tax Return is not required. However, this is a common misconception.' by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Trading CFD dengan Teknologi dan Kecepatan Lebih Baik IC Markets Pelajari Undo 'TDS, Form 16, or Form 26AS do not confirm that the overall tax liability has been correctly computed and discharged. TDS is often deducted at a prescribed rate, which may not match the actual tax liability. Moreover, it does not exempt an individual from the obligation to file an ITR,' Amarpal Chadha tells TOI. Also Read | ITR Filing FY 2024-25: Have you got an Income Tax notice? Don't ignore it! Top types of tax notices & actions required The most important thing to understand here is that filing an ITR is mandatory if one's total income, before claiming certain deductions or exemptions, exceeds the basic exemption limit, or if specific conditions under the Income Tax Act are met, like having foreign income or assets, or have undertaken high-value transactions (like expense towards foreign travel, deposits into savings account exceeding a specified amount, etc). 'Additionally, the law also mandates filing of income tax return if the aggregate of TDS and tax collected at source exceeds the specified limit,' he says. 'It is also essential to file an ITR in cases where one is seeking a refund of excess TDS, intends to carry forward losses, etc,' Chadha concludes. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
5 days ago
- Business
- Time of India
Big e-Aadhaar revamp on the cards! No more photocopies of Aadhaar card required, updation to become easy; check top steps
Users can share digital versions of their Aadhaar, choosing between complete or masked formats. Big e-Aadhaar revamp soon! In the coming weeks, a new QR code-based application will eliminate the need for physical photocopies of Aadhaar cards to be submitted. Users can share digital versions of their Aadhaar, choosing between complete or masked formats. By November, the Unique Identification Authority of India ( UIDAI ) is also planning to introduce a streamlined procedure that will significantly reduce visits to Aadhaar centres for updation. Except for biometric submissions, updates to address and other information will be automated through integration with various official databases. These include birth certificates, matriculation records, driving licences, passports, PAN cards, PDS and MNREGA systems. This initiative aims to simplify the process for citizens whilst reducing fraudulent document submissions for Aadhaar registration. Additionally, discussions are in progress to incorporate electricity bill records to enhance user convenience. Also Read | ITR filing FY 2024-25: Several changes in Form 16! Top things salaried taxpayers shouldn't miss UIDAI's chief executive officer Bhuvnesh Kumar has informed TOI about a newly developed application, with approximately 2,000 out of one lakh machines already utilising this new system. "You will soon be able to do everything sitting at home other than providing fingerprints and IRIS," he said. e-Aadhaar Revamp: Explained in Top Points The application will enable users to update personal details including addresses, telephone numbers, names and incorrect birth date corrections. The introduction of QR code-based Aadhaar transfers between mobile devices or applications is considered essential for preventing misuse, with potential applications ranging from hotel check-ins to identity verification during rail travel. "It offers maximum user control over your own data and can be shared only with consent," Kumar said. The system can additionally be implemented by sub-registrars and registrars during property registration procedures to prevent fraudulent activities. Kumar indicated that UIDAI is working with state governments to incorporate Aadhaar verification for individuals registering properties, aiming to reduce instances of fraud. UIDAI has commenced discussions with CBSE and additional examination boards to facilitate biometric and other data updates for children, which needs to be completed during two age brackets: between five and seven years, and between 15 and 17 years. They are planning a dedicated campaign to address the pending updates, which include eight crore cases for the first update (children aged five to seven years) and 10 crore cases for the second update. Additionally, UIDAI is collaborating with various organisations, including security agencies and hospitality establishments, to extend Aadhaar services to entities where its use is not mandatory. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
