21 July 2010
Dear we can issue but there is no such legislative requirement . We should see the main logic behind this i.e. to make easier return fling for those who are not aware with the Indian complicated taxation act. moreover it will distort your accounting picture means you will get disturbed if you will start to issue form 16 even to those employees whose no tax is deducted.
21 July 2010
Yes you can issue it even if no tax is deducted of that employee or no investment is made under chapter VI –A on income tax Act 1961. To be more specific you can issue to any employee whose tax is deducted or not without any legislative requirement , what so ever condition is there. So you can issue to that employee.
CAclubindia
