ITR filing: There is a major update revealed regarding ITR filing. Taxpayers now have two options for filing ITR. These include the old tax regime and the new tax regime. If you use any of these tax regimes, then you have to fill out Form 16. However, this form can be used not only at the time of filing taxes but also in many other places. Taxpayers have time till 31st July to file ITR. All taxpayers must file ITR before this; otherwise, you may have to pay a heavy fee. Form 16 can also be used in these places.
1. Can be used in visa
If you are thinking of going abroad and want to apply for a visa, then Form-16 can be used here. Actually, while applying for a visa, you have to show financial stability, for which you can use Form-16. This form can be used as proof of income.
Apart from Form-16, the pay slip received from your company can also be used as proof of income.
2. While applying for a loan
If you are planning to apply for a loan, then Form 16 can be used here. Every financial institution and bank asks for proof of income while giving you a loan. Because these institutions give loans only to those people who have a stable source of income. In such a situation, if you do not have a pay slip or any other income proof option, then Form 16 can be chosen.
3. Credit Card
If you apply for a credit card, here also you are asked for proof of income. Because to pay the credit card bill, you must have an income source. No matter which credit card you take, the company asks for proof of income from you. For this, you can use Form 16 as proof of income.
4. It can be useful when changing jobs
When changing jobs, you have to show proof of income to the new company. Whether it is to show TDS or details of income amount, Form 16 can be used in both. If you do not have sufficient pay slips, then Form 16 used in ITR filing can be used.