Form 16 for income tax return filing: Key things to check, difference between Part A and B, more

Salaried individuals can start filing income tax returns (ITR) for the financial year 2022-23 as most employers must have issued Form 16 by now. Form 16, an essential document, provide details of TDS/TCS for various transactions between the deductor and deductee. It reflects the working of income earned as salary along-with various allowances and deductions.

So, is Form 16 sufficient for filing ITR?

No, it may not be sufficient to file ITR if individuals have any income from sources other than salary, said Sujit Bangar, Founder at Taxbuddy.com.

"For example, an individual may be having income from freelancing, gain from sell of investments like shares, mutual fund units, bonds, property etc," he told CNBC-TV18.com.

One of the major misconceptions is that one can’t save tax other than deductions reflected in Form 16. While filing the income tax return, it’s very much needed to do a fresh analysis of tax saving investments and tax expenses incurred during financial year 2022-23. This way one can save taxes beyond what has been reflected in Form 16.

Source Link: https://www.cnbctv18.com/personal-finance/income-tax-return-itr-filing-form-16-things-to-check-difference-between-part-a-and-b-eligible-16951071.htm/amp

Website Link: https://www.taxbuddy.com/

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