<p>In order to simplify the process of filling <a href="https://www.deccanherald.com/tags/income-tax">Income Tax</a> Returns (ITR), the government of India has come up with a electronic Form 16, as part of its initiative of Digital India. </p><p>By making the Form 16 digital, the government aims to streamline the process of filing ITRs and make the process more accessible and easy for employees. </p>.Even without a Form 16, one can e-file tax returns.<p><strong>What is Form 16? </strong></p><p>Form 16 is a document issued by the employers to the employees that provides details of salary income and tax deducted at source (TDS). The form is generated from the TRACES portal of the Income Tax Department.</p><p>This ensures that the form's data is not only consistent but also reliable. </p>.<p><strong>Benefits of digitisation</strong> </p><p>After receiving a digitised copy of Form 16, all one needs to do is upload it on a tax-filing platform. From there on, it will automatically extract salary income, TDS, and deductions under sections like 80C and 80D thus ensuring one doesn't have to calculate manually. </p><p>This not only takes the burden of the person to do calculations but also makes sure the there is no room for error.</p>.<p><strong>Speed </strong></p><p>Another benefit of digitisation of Form 16 is speed. A <a href="https://www.moneycontrol.com/news/business/personal-finance/understanding-digital-form-16-why-it-s-important-for-your-itr-filing-13023219.html">news report</a> by <em>Money Control</em> outlines the benefit of digitisation<em>, </em>"Since the information is already structured in a format aligned with the Income Tax Department’s systems, tax filing platforms ensure that returns are processed quickly, thus leading to quicker ITR approvals and faster refund disbursals."</p><p><strong>Security</strong> </p><p>Another aspect of import which comes with digitisation is security. Keeping your financial data safe is of paramount importance. Thus to ensure that all these forms are password-protected that follow a standard format. </p>.<p>Moreover, these platforms do not share your or your clients’ data with other third parties for their use. They are also backed by ISO 27001-certified data centres, which frequently undergo through VAPT (Vulnerability Assessment and Penetration Testing), keeping the data protected at all times.</p> <p><strong>Changing of jobs</strong></p><p>In this day and age, people are frequently changing their jobs. Earlier, this would have resulted in the accumulation of multiple Form 16 from different employers. But this platform offers you the option to simply upload all of them to the tax filing platform, and the system will automatically give you the figures.</p>.<p>Last but certainly not the least, digitisation of Form 16 paves for less use of paper. Thus making it an eco-friendly option,</p>
<p>In order to simplify the process of filling <a href="https://www.deccanherald.com/tags/income-tax">Income Tax</a> Returns (ITR), the government of India has come up with a electronic Form 16, as part of its initiative of Digital India. </p><p>By making the Form 16 digital, the government aims to streamline the process of filing ITRs and make the process more accessible and easy for employees. </p>.Even without a Form 16, one can e-file tax returns.<p><strong>What is Form 16? </strong></p><p>Form 16 is a document issued by the employers to the employees that provides details of salary income and tax deducted at source (TDS). The form is generated from the TRACES portal of the Income Tax Department.</p><p>This ensures that the form's data is not only consistent but also reliable. </p>.<p><strong>Benefits of digitisation</strong> </p><p>After receiving a digitised copy of Form 16, all one needs to do is upload it on a tax-filing platform. From there on, it will automatically extract salary income, TDS, and deductions under sections like 80C and 80D thus ensuring one doesn't have to calculate manually. </p><p>This not only takes the burden of the person to do calculations but also makes sure the there is no room for error.</p>.<p><strong>Speed </strong></p><p>Another benefit of digitisation of Form 16 is speed. A <a href="https://www.moneycontrol.com/news/business/personal-finance/understanding-digital-form-16-why-it-s-important-for-your-itr-filing-13023219.html">news report</a> by <em>Money Control</em> outlines the benefit of digitisation<em>, </em>"Since the information is already structured in a format aligned with the Income Tax Department’s systems, tax filing platforms ensure that returns are processed quickly, thus leading to quicker ITR approvals and faster refund disbursals."</p><p><strong>Security</strong> </p><p>Another aspect of import which comes with digitisation is security. Keeping your financial data safe is of paramount importance. Thus to ensure that all these forms are password-protected that follow a standard format. </p>.<p>Moreover, these platforms do not share your or your clients’ data with other third parties for their use. They are also backed by ISO 27001-certified data centres, which frequently undergo through VAPT (Vulnerability Assessment and Penetration Testing), keeping the data protected at all times.</p> <p><strong>Changing of jobs</strong></p><p>In this day and age, people are frequently changing their jobs. Earlier, this would have resulted in the accumulation of multiple Form 16 from different employers. But this platform offers you the option to simply upload all of them to the tax filing platform, and the system will automatically give you the figures.</p>.<p>Last but certainly not the least, digitisation of Form 16 paves for less use of paper. Thus making it an eco-friendly option,</p>
