Form 16 Changes Explained: What Salaried Taxpayers Should Know For ITR FY2024-25

Last Updated:June 13, 2025, 06:30 IST

Form 16 is a crucial document for salaried employees as it reflects total salary, TDS deducted, and tax calculations.

ITR Filing FY2024-25: The Income Tax Return (ITR) filing season for FY 2024-25 has officially begun with Form 1 to Form 4 utilities now available. However, salaried individuals will need to wait until June 15, 2025, when employers are mandated to issue Form 16. This year, the IT department has extended the ITR deadline to September 15, giving taxpayers more time to file.

Form 16 is a crucial document for salaried employees as it reflects total salary, TDS deducted, and tax calculations. It comes in two parts—Part A (TDS details) and Part B (salary breakup, deductions like 80C, 80D). For non-salary income such as FD interest or consultancy fees, Form 16A is used.

This year’s Form 16 comes with key changes, as explained by Anita Basrur, Partner at Sudit K. Parekh & Co. LLP. Earlier, employees could declare other income to employers, but employers weren’t allowed to adjust excess TDS. Now, under the amended format, other incomes and related taxes—including TCS—can be offset if declared in Form 12BBA.

Moreover, based on the chosen tax regime (old or new), the standard deduction and NPS contributions will be shown more clearly. The new tax regime offers a higher standard deduction and better NPS benefits.

TDS Verification: Should You cross-check With Form 26AS Or AIS?

The correct claim of TDS is based on the income that is offered to tax. Credit for TDS is available only in the year in which the income is assessable. In order to ensure that the claim for TDS is made correctly, one needs to not only go by the income that is received and offered to tax and TDS thereon but should also verify the same information that is available with the authorities that is provided in the AIS data that appears on the portal. It is possible that some income has been missed to be reported by the tax-payer. In addition, the income and TDS in the Form 26AS needs to be cross checked to again ensure proper claims and offering of income. It is important to note that if claim for TDS is missed to be made in the original or revised return, the same is lost and credit for it cannot be sought. Thus making the correct TDS claim is very important.

Varun Yadav

Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst…Read More

Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst… Read More

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