ITR Filing 2025: Form 16 to Come in New Format — Here's What Taxpayers Need to Know

As the new income tax filing season for the financial year 2024-25 (AY 2025-26) begins, the Income Tax Department is set to roll out updated ITR forms and an improved version of Form 16 — a key document for salaried individuals.

📄 What is Form 16?

Form 16 is a TDS certificate issued by employers to salaried employees. It certifies that tax deducted at source (TDS) on salary has been deposited with the government. It summarizes the total salary income, tax deductions, and TDS for the financial year.

📌 What’s New in Form 16 for 2025?

The Income Tax Department has made significant changes to the structure and details included in Form 16. The revised format is designed to make the tax filing process clearer, more transparent, and accurate for both employees and the department.

✅ Key changes in the updated Form 16 format:

• Detailed break-up of tax-exempt allowances under Section 10.

• Clear segregation of perquisites and benefits that are taxable.

• Transparent view of deductions claimed under Sections 80C, 80D, etc.

• Easier cross-verification of income and deductions during ITR filing.

🔍 Form 16 Structure: Part A & Part B Part A:

• Employer and employee details (PAN, TAN)

• Quarterly summary of TDS deducted and deposited

• Helps verify TDS entries with Form 26AS

Part B:

• Detailed salary breakup

• Exemptions and deductions (HRA, LTA, 80C, 80D, etc.)

• Taxable income and total tax liability

🧾 Why Form 16 Matters

• Essential for filing accurate ITR

• Serves as income proof for loan applications

• Helpful in claiming TDS refunds

• Assists in validating deductions and exemptions

🛑 What Should Taxpayers Do Now?

With changes expected in both ITR forms and Form 16, taxpayers are advised to:

• Stay updated with notifications from the Income Tax Department.

• Collect Form 16 from all employers if you’ve switched jobs during the year.

• Keep other documents ready: Form 26AS, AIS, bank statements, investment proofs, etc.

🗓️ Final Word

The revamped Form 16 is part of the government’s efforts to make the ITR filing process more transparent and streamlined. As the filing deadline approaches, understanding the new Form 16 format will help you avoid errors, maximize tax benefits, and ensure timely compliance.