How to File ITR Using Form 16

To file your income tax return using Form 16, first gather it along with Form 26AS and other deduction proofs. Log onto the Income Tax e-filing portal and select the correct Assessment Year and ITR form (usually ITR-1). Read more below.
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01 July 2025

As the deadline for filing income tax returns (ITR) approaches, salaried employees will notice some major changes in Form 16 (a key document required for ITR filing).

The Central Board of Direct Taxes (CBDT) issued a notification on February 20 introducing a revised format for Form 16.

Please note that these changes apply to the FY 2024-25 (AY 2025-26). They will now be reflected as employers begin issuing the updated forms.

For those unaware, Form 16 is issued under Section 203 of the Income Tax Act. It is a certificate that shows the total salary paid to an employee and the amount of TDS during the year.

The new format is designed to make salary breakups more detailed and easier to understand. Now, taxpayers can easily match the details in Form 16 with their Annual Information Statement (AIS) and Form 26AS. This reduces the chances of mismatches and notices from the Income Tax Department.

Want to know more? In this guide, you will learn what Form 16 is and how to file Income Tax Returns online with Form 16. Also, we have covered the latest changes in Form 16 for filing ITR for FY 2024-25 and AY 2025-26.

Understanding Form 16

Before diving into the filing process, it’s essential to understand what Form 16 entails. Form 16 is divided into two parts: Part A and Part B.

  • Part A includes details such as the employer’s and employee’s information (name, address, PAN, and TAN), the summary of tax deducted and deposited quarterly, and the employee’s PAN.
  • Part B is an annexure with details of the employee’s salary break-up, deductions under Chapter VI-A, and any other income disclosed by the employee.

Form 16 is issued annually by the employer and is pivotal for filing ITR as it provides all the necessary details required for the return.

Form 16 for ITR filing for FY 2024-25: Top changes explained

Are you a salaried individual ready to file your ITR for the FY 2024-25 (AY 2025-26)? You must understand certain key changes made to Form 16. The recent updates in the tax rules and reporting requirements have made Form 16 more detailed. These changes have been made to:

  • Reduce filing errors

  • Improve transparency

  • Align Form 16 with other tax records like Form 26AS and AIS

For a better understanding, let’s check out the three major updates in Form 16 you must know:

1. Changes in Standard Deduction:

The standard deduction for salaried taxpayers has increased under the new tax regime. Earlier, it was Rs. 50,000. From FY 2024-25, it has been raised to Rs. 75,000. This change is only for those who opt for the new income tax regime.

If your employer has deducted TDS based on the new regime, Form 16 will show the increased Rs. 75,000 standard deduction. However, if you decide to switch to the old tax regime at the time of filing your return, then the deduction will be limited to Rs. 50,000.

Please note that the deduction amount directly reduces your taxable salary income. So, while filing your ITR, you should be aware of which tax regime you are choosing, as it will determine the allowable deduction shown in your Form 16.

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2. Taxes deducted from other incomes:

In a new update, Form 16 will now show tax deductions from sources other than salary, such as interest earned on fixed deposits. Additionally, it can show Tax Collected at Source (TCS) on specific expenses like foreign travel or overseas remittances.

However, this will happen only if you, as an employee, have submitted Form 12BBA to your employer. This change was introduced after the Union Budget 2024, which allowed salaried individuals to report their other taxable incomes and expenses (that are subject to TCS) to their employer.

Once reported, your employer can include these in the total tax computation while preparing Form 16. Such a declaration helps in:

  • Adjusting the overall TDS amount deducted from your salary and

  • Preventing excess tax deduction

However, if Form 12BBA is not submitted, your employer will only deduct tax based on your salary income, and you will have to report the rest during return filing.

3. NPS benefits:

Under Section 80CCD(2), employees can claim a deduction for their employer’s contribution to their National Pension System (NPS) account. Let’s see how the deduction varies in the two regimes:

New regime

Old regime

14% of the basic salary

10% of the basic salary


Now, the enhanced deduction (an additional 4%) will only be shown in the Form 16 for employees who have opted for the new regime. If the employee later switches to the old tax regime while filing the return, the deduction limit reduces to 10% of basic salary.

Step-by-step guide to filing ITR using Form 16

Follow the steps below to file your ITR with Form 16:

Step 1: Gather necessary documents

Before you start filing your ITR, gather all necessary documents, including:

  • Form 16 from your employer
  • Form 26AS (Tax Credit Statement)
  • Salary slips
  • Bank statements
  • Proof of investments
  • Deductions under Section 80C, 80D, etc.
  • Home loan interest certificate, if applicable

Step 2: Log in to the income tax E-Filing portal

Visit the official Income Tax e-filing portal and log in using your User ID (PAN), password, and date of birth.

Step 3: Selection of ITR Form

Once you logged into your account, click on 'Filing of Income Tax Return' and select the correct ITR form. For salaried individuals, it's usually ITR-1 or ITR-2, depending upon income sources.

Step 4: Fill in personal information

Open the downloaded ITR form and start filling in your personal information, such as:

  • Name
  • PAN
  • Address
  • Date of birth
  • Aadhaar number

Ensure that these details match those provided in your Form 16.

Step 5: Enter income details from Form 16

Refer to Part B of Form 16 to fill in the details of your income from salary. This includes:

  • Gross salary
  • Exempt allowances (like HRA, LTA)
  • Net salary (after exemptions)
  • Any other income (interest from savings account, etc.)

Step 6: Fill in the TDS details

From Part A of Form 16, fill in the Tax Deducted at Source (TDS) details. This includes:

  • TAN of the employer
  • Name of the employer
  • TDS deducted and deposited

Step 7: Enter deductions and taxable income

Refer to Part B of Form 16 for details on deductions under Chapter VI-A, which includes:

  • Section 80C (investments in PPF, NSC, etc.)
  • Section 80D (medical insurance premium)
  • Section 80E (interest on education loan)
  • Section 80TTA (interest on savings account)

Calculate your total deductions and subtract them from your gross income to determine your taxable income.

Step 8: Verify tax paid and compute tax liability

Compare the details of tax deducted in Form 16 with your Form 26AS to ensure there are no discrepancies. Form 26AS is a consolidated tax statement that shows the details of tax deducted, collected, and paid during the year.

Compute your tax liability based on the taxable income. Use the tax slabs applicable for the financial year to calculate the tax payable.

Step 9: Pay additional tax (if any)

If there is any additional tax payable after considering the TDS and other tax credits, you can pay it online through the e-filing portal. Generate a Challan 280 and pay the tax.

Step 10: Fill in bank details

Provide your bank account details, including the account number and IFSC code, for any tax refund or communication from the Income Tax Department.

Step 11: E-verify your returns

After confirming all your details, submit the form. An acknowledgement number will be generated. Keep this number safely for future reference. Next, e-verify your returns using either Aadhaar OTP method, generating EVC through net-banking, or by sending a physical signed copy of the ITR-V to CPC, Bengaluru.

E-verifying your return is the final step in the filing process. It is crucial to complete this step to ensure your return is processed without delays.

Tips for accurate ITR filing

  • Check for errors: Ensure that all personal details and income figures match the documents provided.
  • Claim all deductions: Make sure to claim all eligible deductions under various sections to reduce your tax liability.
  • Cross-verify with Form 26AS: Always cross-verify the TDS details in Form 16 with Form 26AS to avoid any discrepancies.
  • Keep records: Maintain all supporting documents for investments, deductions, and other incomes in case of any future queries from the Income Tax Department.
  • Timely filing: File your ITR before the deadline to avoid penalties and interest.
  • Filing your ITR using Form 16 can be straightforward if you follow the step-by-step guide outlined above. Form 16 provides all the necessary information required for filing your return accurately. By understanding each section and ensuring all details are correctly filled, you can complete your ITR filing process smoothly. Remember to verify your return to complete the process and ensure it is processed on time.

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Who needs Form 16?

Form 16 is a document issued to salaried individuals whose employer has deducted TDS from their salary. It acts as proof that:

  • Tax has been deducted and

  • Paid to the government on your behalf

Mostly, you will receive Form 16 from your employer if all the following conditions apply:

  • You work as a full-time or part-time employee.

  • Your salary is more than the basic exemption limit. For FY 2024-25 (AY 2025-26), the limits are:

    • Rs. 2.5 lakh under the old regime and

    •  Rs. 3 lakh under the new regime

  • Your employer has deducted TDS from your salary during the financial year.

Note: If your salary is below the exemption limit and your employer has not deducted any TDS, they are not required to issue Form 16. In such cases, you can still file your income tax return using salary slips and Form 26AS.

How can I use Form 16 to file income tax returns?

Form 16 confirms that the TDS on salary has been deposited with the government.

Let’s see how you can use Form 16 to file your ITR:

  • Check your total salary, deductions, and tax paid (as mentioned in the form).

  • Use the details in Part A and Part B of Form 16 to fill in your income and tax information in the ITR form.

  • Match the TDS details in Form 16 with Form 26AS. This makes sure there are no mismatches.

Why is the income tax Form 16 required?

Form 16 serves as a TDS certificate and confirms that tax was deducted from your salary and deposited with the government. It shows several details, such as:

  • The employee’s income

  • Tax deductions (TDS)

  • Tax paid during the financial year

This form is highly useful when filing your ITR because it contains all the information needed to complete the return. If your only source of income is salary, understanding Form 16 makes it easier to file your ITR correctly.

Please note that Form 16 has two parts: Part A and Part B:

Part A of Form 16

This part covers the following information:

  • Employee's name and address

  • Employer's name and address

  • PAN of both the employer and the employee

  • TAN of the employer

  • Assessment Year (in which income is assessed for tax)

  • Date of joining (when the employee started working with the employer).

  • TDS summary showing total tax:

    • Deducted by the employer and
    • Deposited with the government (on behalf of the employee)

Part B of Form 16

This part covers the following information:

  • Salary details, such as:

    • Gross salary

    • Basic pay

    • Allowances

    • Perquisites, etc.

  • Any additional income reported by the employee to the employer, such as interest income.

  • Taxable income (represents the total income after deductions).

  • Any deductions claimed under Chapter VI-A, such as:

    • Section 80C, 80CCC, 80CCD(1): Deductions such as life insurance, PPF, EPF, ELSS. The combined cap is Rs. 1.5 lakh.

    • Section 80CCD(1B): It is an additional Rs. 50,000 deduction for NPS contributions.

    • Section 80D: Health insurance premiums.

    • Section 80E: Education loan interest.

    • Section 80G: Donations to approved charities.

  • Total tax payable and tax already deducted (TDS).

By using Form 16, you, as a taxpayer, can understand your salary structure and tax liability. Also, it helps in accurately entering your income, deductions, and tax paid while filing your ITR.

Which ITR form to use with Form 16?

When filing your ITR using Form 16, you need to choose the correct ITR form based on your sources of income. The Income Tax Department has different forms for different types of income.

If you are a salaried employee, you can use Form 16 to report your salary income, but the ITR form you use will depend on whether you have other types of income.

The two forms you can use are:

1. ITR-1 (Sahaj)

Use ITR-1 if you meet all the following conditions:

  • You are an individual (not a Hindu Undivided Family or HUF).

  • Your total income is up to Rs. 50 lakh.

  • You earn income from:

    • Salary

    • One house property

    • Other sources, like interest from savings accounts or fixed deposits.

  • You do not have income from:

    • Capital gains

    • Business or profession

    • Foreign income

    • Agricultural income over Rs. 5,000

    • Winnings from the lottery or income from racehorses

2. ITR-2

Use ITR-2 if:

  • You are an individual or HUF.

  • Your total income exceeds Rs. 50 lakhs.

  • Your income includes capital gains (such as from the sale of property or shares), or you own more than one house property.

  • You do not have income from a business or profession.

To remain compliant, you must choose the right ITR form. Also, an incorrect selection can make your ITR invalid.

Documents required to file ITR with Form 16

When you are ready to file your ITR using Form 16, it is important to collect certain documents in advance. These documents let you enter correct details about your:

  • Income

  • Deductions

  • Taxes paid

Below is a list of documents you need:

  • Form 16 (Part A and B)

  • PAN card

  • Aadhaar card

  • Bank account details (account number and IFSC code for refund or tax payment)

  • Interest certificates (showing interest earned on savings accounts and fixed deposits)

  • Form 26AS (shows all taxes paid and TDS deposited against your PAN)

  • Investment proofs (to claim deductions under sections like 80C, 80D, 80G)

  • Rent receipts [required if you are claiming House Rent Allowance (HRA)]

Other topics you might find interesting

How to Download Form 16

 

What is TDS on commission

TDS on Purchase of Property

How to Download Form 16 for Salaried Employees

How to Download and Fill Form 26QB

How to Download Your Ownership Certificate

How to Download RERA Certificate

How to download the Income Tax Return File

Difference between TDS and Income Tax Return

How to Download Form 16 for Salaried Employees

How to Download Form 16 from TRACES

How to File ITR Without Form 16


What happens after filing ITR with Form 16?

After you file and verify your ITR, the next steps are handled by the Income Tax Department. As a taxpayer, you must know what to expect once the return is submitted.

Let’s understand what happens next:

  • You will receive an acknowledgement (ITR-V) on your registered email. This confirms that your return has been successfully filed.

  • The Income Tax Department will then process your return. They will:

    • Review the information you provided and
    • Check it against their records, such as Form 26AS and AIS.

  • If you are eligible for a tax refund, the amount will be credited to your bank account mentioned on the return.

  • If there are any errors, mismatches, or missing information, you may receive a notice from the department asking for clarification or correction.

Post-filing ITR, you should always check your email and income tax account regularly for updates.

Common mistakes to avoid when filing ITR with Form 16

Mistakes or non-compliance while filing your ITR can lead to problems like:

  • Return rejection/ invalidation

  • Delayed refunds

  • Notices from the Income Tax Department

To avoid such issues, keep the following points in mind:

  • Spot mismatches between Form 16 and Form 26AS: Always check that the tax deducted (TDS) in Form 16 matches the figures in Form 26AS. Any difference can lead to a notice.

  • Wrong ITR form selected: If you choose an incorrect form, your return will be marked as defective or invalid.

  • Not reporting other income: You must report income from all sources, such as interest, rent, or any other source.

  • Ignoring exempt income: Any tax-free income (such as interest from tax-free bonds or gifts received) should still be reported under the exempt income section.

  • Not e-verifying: After filing, you must e-verify your ITR within 30 days. If you skip this, your return is not considered valid.

Conclusion

Form 16 gives a clear record of your salary income and the tax your employer has already paid. Whether you are filing for the first time or have done it before, knowing how to use Form 16 allows you to:

  • Report your income correctly

  • Be tax compliant

  • Claim the deductions you are eligible for

Before filing, collect all the required documents and make sure the information in Form 16 matches with Form 26AS. Next, choose the correct ITR form based on your income sources. After filing, don’t forget to e-verify your return within 30 days. This step is necessary to make your return valid.

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Frequently asked questions

Who provides Form 16?
Form 16 is provided by your employer. It is given to all salaried individuals and serves as proof of Tax Deducted at Source (TDS) by the employer on your salary income.
Can I file ITR without Form 16?
Yes, you can file ITR without Form 16. You will need to collect details like income from salary, tax deductions and exemptions from your salary slips, and TDS details from Form 26AS.
How can I obtain Form 16?
To obtain Form 16, you need to approach your employer. The company you work for is required to issue this form to its employees annually.
Can I get Form 16 online?
Yes, you can get Form 16 online provided your employer uploads Form 16 on their internal portal.
Are there different types of Form 16?
Yes, there are two types of Form 16: Form 16A and Form 16B. Form 16A is a certificate issued for tax deducted at source on income sources other than salary, while Form 16B is a certificate issued for tax deducted on the sale of property. Both are issued by the Income Tax Department.
Is Form 16 mandatory for filing an income tax return?

No, Form 16 is not mandatory to file your income tax return. It is just a summary of your:

  • Salary income and

  • Tax deducted by your employer

If your employer did not issue Form 16 or you lost it, you can still file your return using your:

  • Salary slips

  • Bank account statements

  • Form 26AS (shows the tax already paid on your behalf)

What if I have worked for multiple employers in a year?

If you worked for more than one employer during the financial year, you will receive separate Form 16s from each of them.

While filing your return, you must:

  • Add the total income from all the jobs and

  • Include the TDS details from each Form 16

Make sure you enter the combined figures correctly so that the return reflects your full income and total tax paid.

How to access digital Form 16 easily for ITR?

To access your digital Form 16 for ITR filing, first check if your employer has provided it—most send it by email or make it available on their HR/ payroll portal. If not, request it from your HR department. Alternatively, you can download Form 16 from the TRACES portal (https://www.tdscpc.gov.in) by logging in with your credentials and selecting the relevant financial year and form type (Part A and B). Always cross-check the TDS details in Form 16 with your Form 26AS on the Income Tax portal to ensure accuracy.

How to use Form 16 for filing ITR?

Once you receive Form 16 from your employer, you should first check that the TDS details match with those shown in Form 26AS and the Annual Information Statement (AIS)

For those unaware, both these documents are available on the income tax portal without any additional charge. Through such a reconciliation, you can make sure that all tax information is accurate.

Ideally, you should use Part B of Form 16 to fill in your salary income, exemptions, and deductions (in the ITR form)

When filing on the Income Tax e-filing portal, you can either enter the data manually or check if the pre-filled details match your Form 16.

Be aware that the Income Tax Department also advises that TDS amounts, PAN, and other details must match across all documents. This avoids errors or delays in return processing.

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Why use digital Form 16 filing ITR online?

By using a digital Form 16, you can make your online ITR filing much easier. That’s because online tax filing platforms can automatically import Form 16 data, such as:

  • Salary

  • Tax deductions

  • TDS

Also, these platforms match your records with the Income Tax Department’s database to reduce errors. After completing your return, you can e-verify it:

  • Using Aadhaar OTP

  • Via net banking

  • By sending a signed ITR-V form to the Centralised Processing Centre (CPC)

In this way, online ITR filing by using a digital Form 16 allows salaried people to submit their returns correctly and on time.

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