Can You File ITR Without Form 16? A Tax Expert Shares Insights Into Digital Form 16

Last Updated:June 04, 2025, 18:40 IST

CA Ruchika Bhagat, managing director of Neeraj Bhagat & Co, shares insights about the Form 16, especially Digital Form 16:

The online ITR filing 2025 process has started. The income tax return (ITR) process has often been seen as complex, especially for salaried individuals who are unsure about income details, TDS deductions, and applicable exemptions. However, with the introduction of the Digital Form 16 and advanced data integration by the income tax department, the ITR process has become significantly easier and more streamlined.

CA Ruchika Bhagat, managing director of Neeraj Bhagat & Co, shares insights about the Form 16, especially Digital Form 16:

What Is Digital Form 16?

Form 16 is a certificate issued by employers to their employees, containing details of the salary paid and the tax deducted at source (TDS) on it. Traditionally, salaried individuals relied on this form to file their ITR manually, deciphering each component of income, deduction, and tax paid.

Also Read: What Is Form 26AS? The Tax Form That Can Save You From Notices

Now, with the digital integration of Form 16 into the Income Tax portal, much of this data is auto-populated in the ITR filing form, reducing the scope for errors and easing the burden on taxpayers.

How Digital Form 16 Works

The new Digital Form 16 is generated directly from the employer’s filings in the TRACES (TDS Reconciliation Analysis and Correction Enabling System) portal and is digitally signed. Once uploaded, it synchronises with the income tax e-filing portal and auto-extracts the relevant information such as:

• Salary income (including basic pay, allowances, bonuses, etc.)
• Total TDS deducted and deposited by the employer
• Details of tax-saving investments under Section 80C, 80D, etc., if submitted to the employer
• Any other perquisites or non-monetary benefits provided by the employer

This data is then automatically reflected in the pre-filled ITR forms (especially ITR-1 and ITR-2), saving time and effort for salaried taxpayers.

Benefits of Digital Form 16 for Taxpayers

1. Simplified Filing Process: The automation eliminates the need to manually enter income, TDS, and deduction figures. Even taxpayers with limited tax knowledge can now file their returns with minimal effort.

2. Reduces Errors: Manual errors in key fields like PAN, salary income, or deductions can lead to notices or delays in processing. Auto-extraction ensures data accuracy, matching it exactly with the employer’s TDS returns.

3. Faster Processing of Refunds: Since the data is clean and directly matched with the backend system, tax returns are processed quickly, and refunds (if any) are issued sooner.

4. Convenience for Busy Professionals: Salaried individuals, especially working professionals, no longer need to spend hours organising Form 16 or seeking professional help for basic returns.

5. Eco-Friendly and Paperless: No need to print or physically handle documents. Digital Form 16 aligns with the government’s “Digital India” initiative and promotes a paperless ecosystem.

How to File ITR Using Digital Form 16

1. Log in to the Income Tax Portal: Visit https://www.incometax.gov.in and log in using your PAN and password.

2. Select Pre-filled ITR: Choose the applicable ITR form (mostly ITR-1 for salaried individuals) and download the pre-filled version.

3. Review Auto-filled Data: Check all fields auto-populated using Digital Form 16, including income, TDS, and deductions.

4. Update Additional Deductions (if any): If you have made additional investments or donations after submitting proof to your employer, manually add those.

5. Validate and Submit: Once everything is reviewed, validate the return, e-verify it via Aadhaar OTP or net banking, and submit.

Can You File ITR Without Form 16?

Yes, Form 16 is just a certificate issued by your employer summarising your salary and TDS. It is not mandatory for filing your return. However, the salaried individuals are advised to file ITR only after Form 16 comes in as it “makes the process simpler, safer, and less error-prone”, according to another tax expert.

Employers must issue Form 16 by June 15 of the next financial year after deducting TDS. So, for FY 2024-25, your employer must provide Form 16 by June 15, 2025.

Mohammad Haris

Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to markets, economy and companies. Having a decade of experience in financial journalism, Haris has been previously asso…Read More

Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to markets, economy and companies. Having a decade of experience in financial journalism, Haris has been previously asso… Read More

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