ITR filing 2025: 3 big changes in Form 16 for salaried employees

Salaried employees are expected to receive their Form 16 for the Financial Year 2024-25 from their employers by June 15, 2025. Employees can start filing returns after getting Form 16 and claim early refunds, if applicable.

However, there are several changes in Form 16 this year due to various new rules announced in the Union Budget presented in July 2024. This article takes a look at those changes:

There are three major changes in the Form 16 this year.

First, the Form 16 for AY 2025-26 will show the tax deducted from other sources of income. It will also show the tax collected at source (TCS) on various specified items. However, these details will be there in the Form 16 only if you have shared them with your employer in Form 12BBA.

Budget 2024 allowed salaried persons to inform their employers about their other sources of income and TCS from specified expenses. Employees can adjust these TCS and TDS against their total tax liability on salary.

The TDS and TCS details reflected in Form 16 may include TDS on fixed deposit interest or TCS on foreign travel expenditure, etc.

Second, the Form 16 this year will reflect a higher amount of standard deduction compared to previous years. If you have opted for the new tax regime, you will get a standard deduction of ₹75,000. However, those in the old regime will get only ₹50,000 as standard deduction.

Third, Form 16 this year would reflect a higher NPS deduction on the employer's contribution. From FY 2024-25, 14% of basic salary can be claimed as a deduction under Section 80CCD (2) if your employer has contributed this amount to your NPS account. And this higher deduction will reflect in the Form 16 as well. But this benefit is available only under the new tax regime.

If you opt for the old regime, then only up to 10% of basic pay will be allowed as a deduction if this amount is contributed by the employer to your NPS account.