Overview

• The Digital Form 16, introduced for the 2025 assessment year, is generated directly from the TRACES portal by employers, ensuring accurate salary and TDS data.
• This digital form allows taxpayers to upload it to most tax-filing platforms, where details like salary, deductions, and TDS are auto-filled to simplify the process.
• Updated with clear details on tax-exempt allowances and deductions, the form aims to reduce confusion and improve accuracy in income tax returns.
• Password protection and secure storage ensure the safety of sensitive financial data, adhering to global data protection standards.
• The initiative aligns with India’s Digital India goals by reducing paper waste, minimizing environmental impact, and promoting sustainable practices.