ITR Filing: From PAN to TDS—don't rush to file your ITR just because you've received Form 16; check these important details first.

ITR Filing: Form 16 is generally crucial for salaried employees. Most people breathe a sigh of relief upon receiving it, as it contains the breakdown of their salary, tax deductions, and tax calculations; they often assume that simply uploading this document ensures an easy ITR filing process. However, this assumption can lead to complications. Taxpayers need to be aware of common mistakes, some of which are outlined below.

Reading Form 16 isn't enough; understanding it is essential.

Interestingly, many employees view Form 16 as a single document, but that is not the case. According to expert Mrinal Mehta, taxpayers should regard Form 16 as two distinct documents: "Part A is a TDS certificate generated from the TRACES portal, while Part B is a statement prepared by the employer containing salary details and tax calculations."

Verifying PAN, Assessment Year, and Salary Figures

While it may sound simple, experts note that this is an area often overlooked by taxpayers. Expert Anita Basur advises employees to verify that the PAN, Assessment Year, gross salary, and TDS figures are accurate. For instance, discovering an incorrect PAN entry after filing your return could mean that the tax deducted by your employer fails to link correctly to your account, potentially impacting your tax credit.

Ensure TDS is not just deducted but also deposited.

A crucial point is that many taxpayers only check whether tax has been deducted from their salary. However, experts state that the more important question is whether the employer has actually deposited that tax with the government. Furthermore, if TDS has been deducted but not deposited, the corresponding credit will not appear in 'Form 26AS'. This means the taxpayer will be unable to claim it while filing their return.

Do not overlook income that does not appear in Form 16

Mehta noted that this is perhaps the biggest misconception among salaried employees. Many believe that if Form 16 is correct, their tax return is complete. However, that is not necessarily the case. He added, "Form 16 is a certificate of salary and TDS, not a statement of total income." Consequently, income from sources such as savings accounts, fixed deposits, dividends, capital gains, freelance work, or side gigs may not be reflected in Form 16, as the employer is unaware of these earnings.