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If you're a salaried employee whose income is subject to monthly tax deductions, Form 16 is one of the most critical documents you need to file your Income Tax Return (ITR). Let’s understand what Form 16 is, why it matters, how to download it from the TRACES portal, and what recent changes the Income Tax Department has introduced after the Union Budget of July 2024.

🧾 What is Form 16?

Form 16 is a certificate issued by an employer to an employee. It serves as proof that the employer has deducted Tax Deducted at Source (TDS) from the employee’s salary and deposited it with the government.

The document summarizes:

• Your annual earnings

• The tax exemptions and deductions you claimed

• The TDS deposited

📄 Structure of Form 16: Two Parts Explained Part A – TDS Summary

• Name of the employer and employee

• Employer’s TAN (Tax Deduction Account Number)

• Employee’s PAN (Permanent Account Number)

• TDS amount and deposit dates

• TDS details based on Form 24Q

Part B – Salary & Tax Details

• Detailed salary breakup

• Allowances like HRA, LTA, etc.

• Deductions under sections 80C, 80D, 80G, etc.

• Total taxable income and final tax liability

🌐 How to Download Form 16 from the TRACES Portal (for Employers)

Only employers can download Form 16 from the TRACES (TDS Reconciliation Analysis and Correction Enabling System) portal.

Here’s the step-by-step process:

Visit:

Log in with the TAN and password.

Go to the ‘Downloads’ tab and select ‘Form 16’.

Choose the relevant financial year (e.g., 2024–25).

Select whether you need Part A, Part B, or both.

Enter required details like TDS receipt number, payment period, etc.

Submit the request.

Once the request is processed, download Form 16 from the ‘Download’ section.

📥 How Do Employees Get Form 16?

• Usually in June, employers share Form 16 with employees via email or the HR portal.

• If you haven’t received it, contact your HR or finance department.

• Remember, if TDS was deducted from your salary, you are entitled to receive Form 16.

📅 Important Tax Deadline

The deadline for filing ITR for the financial year 2024–25 is September 15, 2025, giving salaried taxpayers extra time for compliance this year.

✅ In Summary

• Form 16 is essential for salaried individuals to file their ITR accurately.

• It includes a full record of your salary, TDS, and tax deductions.

• Employers download it from the TRACES portal; employees get it via official HR channels.

• Don’t wait until the last minute — collect your Form 16 and be ready before the September deadline.

If you're salaried, this is your go-to document to ensure smooth and error-free tax filing.

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