Form16 shows investments as done - But I will go by New Regime

Respected Members,

With my employer, I provided details of investments which have come on Form 16 but I find New Regim beneficial.

So will IT department simply ignore form 16 values under investments (deductions etc) (which won't be anymore there in ITR) when I choose New regim or still raise a query when they do actual processing of filed return?

Thanks

Replies (3)

No query for the deductions claimed in form 15 are asked, when you file ITR under new regime.

Yes. If you file under the new tax regime, claim only deductions and exemptions permitted under that regime. Your employer’s Form 16 may reflect investment declarations or payroll TDS calculations under the old regime, but those declarations do not by themselves become claims in your ITR. Reconcile the salary and TDS figures with Form 16, and report the regime and eligible claims correctly. Any difference in TDS deducted and final tax payable will be settled through the return; a processing query is not automatic merely because Form 16 records investments.

Choosing the regime in the return is subject to the applicable rules, including any requirement to exercise the option by the due date if you have business or professional income. The relevant return form and year also matter.

This regime choice is part of the year-end salary and return reconciliation workflow. Manual checking across Form 16, investment declarations and eligible deductions is difficult; automation can reduce repetitive work while keeping professional judgment in control. At Jir AI, our 2,000+ AI agents and 650+ integrations streamline GST, ITR, TDS, TCS and other compliance workflows, helping reduce manual workload by up to 70%. For a more efficient compliance workflow, connect with us on WhatsApp: https://wa.me/message/3HVOZ7HIY4ESC1.

Form 16 under the new regime though you declared investments:

• If the employer computed TDS under the new regime, your declared investments were ignored. In your ITR (filed by the due date), you can choose the old regime and claim the deductions with proof; any excess TDS will be refunded or shortfall payable.

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