Many things have become digital in India in the last few years. The government’s efforts have a big hand in this. This has been possible due to Digital India, Aadhaar Integration, UPI and e-governance. Also, the growth of Indian Startup Ecosystem has brought a big change in the world of finance, taxation and compliance in terms of technology. Due to this, things are happening soon. The time in the process has decreased significantly.
Use of Digital Form 16
This change also includes digital tax filing instead of manual. It has a big hand of Digital Form 16. It is necessary to understand the importance of Digital Form 16 for every taxpayer doing jobs. This will facilitate them to file income tax return (ITR). The possibility of mistake will decrease significantly.
Benefits of Digital Form 16
Digital Form 16 Tax Certificate is not just a digital copy. This is a solution that makes the Income Tax Compliances very easy for you. Since your employer directly generates it from the traces portal, which is not only correct in it, but also it is very reliable. It helps a lot in filing income tax returns, as the data is no longer afraid of missing or wrong data.
No need to calculate tax
The main data is digitized and it makes it quite easy to file tax. All you have to do is upload Digital Form 16 on the tax filing platform. The system then immediately takes its work data from it. These include the amount of your salary, TDS and section 80C and 80D. This means that you do not need to calculate tax by taking copy and pen.
ITR helps in filing themselves
When some data is wrong, Sistam immediately tells about it. This gives you a chance to correct data before submitting ITR. This is a lot of benefit from this, especially those who do not have experts on tax cases, but want to file their income tax returns themselves. The Income Tax Department is constantly trying to make the return filing process easier so that taxpayers can file returns themselves.
Return and refund processing
A major advantage of Digital Form 16 is that the process of returns is at a very high speed. Since, the information given in it easily matches the information of the Income Tax Department, which makes the tax filing platform returns soon. This provides ITR approval soon and the process of refund is also completed soon. It is beneficial for both taxpayers and income tax department.
Avinash Nalappalli
(The author is the business head of Cleartax. The views expressed here are his personal views, they have no relation with this publication.)