ITR filing FY 2024-25: By June 15, 2025, employers must issue Form 16 to their salaried taxpayers for the fiscal year 2024-25. This year’s Form 16 will have several modifications based on the amendments announced in the July 2024 Budget. Hence, it is important for taxpayers to take note of the changes in order to ensure error-free income tax e-filing.The last date to file Income Tax Return (ITR) for FY 2024-25 (AY 2025-26) has been extended this year from July 31 to September 15, 2025.
Form 16 for ITR Filing : Top Changes Explained
1. Changes in Standard Deduction: This change is applicable only for individuals filing their income tax return under the new income tax regime. Under the new tax regime, standard deduction from salary has increased to Rs 75,000 from Rs 50,000, effective FY 2024-25.For employees who have selected the new tax regime in FY 2024-25 (AY 2025-26), Form 16 will reflect an enhanced Standard Deduction of Rs 75,000 when employers calculate TDS on salary. This aligns with the current income tax provisions for FY2024-25 under the new tax regime.It’s important to note that should an individual decide to switch from new to old tax regime whilst filing ITR for FY 2024-25 (AY 2025-26), the standard deduction allowance from salary income will be limited to Rs 50,000.Also Read | ITR Filing FY 2024-25: Have you got an Income Tax notice? Don’t ignore it! Top types of tax notices & actions required2. Taxes deducted from other incomes: Form 16 will display tax deductions from additional income sources and Tax Collected at Source (TCS) on particular expenditures. This inclusion applies when employees have submitted Form 12BBA to their employer, according to an ET report.Finance Minister Nirmala Sitharaman’s Budget 2024 had seen revised income tax regulations, enabling salaried individuals to notify employers about TDS from other income sources and TCS from specific expenses. These amounts can be deducted from the total tax payable from the employee’s salary, resulting in reduced overall TDS from wages.Suresh Surana, a practising chartered accountant, told ET, “This year, Form 16 will show not only tax deducted by the employer on the salary income, but will also show tax deducted and tax collected on other sources of income such as interest on fixed deposits or tax paid as TCS on foreign travel expenditure, etc. However, this will happen only if a salaried employee has shared the details of other taxes deducted (TDS/TCS) via Form 12BAA.“Also Read | ITR e-filing FY 2024-25: ITR-1 and ITR 4 forms enabled online for return filing on income tax e-filing portal; check details3. NPS Benefits: Under Section 80CCD (2) in the new tax regime, employees are permitted to claim a deduction of up to 14% of their basic salary. This applies to the employer’s contribution towards the employee’s National Pension System (NPS) account. The enhanced deduction will be reflected in Form 16 only for those who have opted for the new tax regime for TDS from salary.However, if an employee switches from the new to old tax regime whilst filing ITR, the deduction benefits will decrease. In the old tax regime, employees can only claim a deduction of 10% of their basic salary under Section 80CCD (2) for their employer’s NPS contribution.
