Form 16

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

14 March 2014 Dear Sir,
As per IT circular 04/2013, employer should issue Part A and Part B of Form 16 to his/her employees . Now my question
(1) Whether If no tax deducted of salaried person then should we issue only part B or in otherwords can an employer issue part B ot its employees having income below taxable limit i.e. 200000 if no then which form to be issue.

(2) Part A is to be download from TRACES but I have seen that there is no mentioning oif PART A in form 16 is it so or I have made mistake to recognise it. I have realised that the said form downloaded from traces have annexure A and B but no mentioning of PART A of form 16 so is it okay or is there any misunderstanding on my part.

please reply thanks in advance

Querist : Anonymous

Querist : Anonymous (Querist)

22 March 2014 Please reply my above query

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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25 July 2024 Let me clarify the doubts regarding Form 16 based on the current guidelines:

### 1. Issuance of Form 16 when no tax is deducted:

If no tax has been deducted from the salary of an employee because their income is below the taxable limit (currently Rs. 2,50,000 for individuals below 60 years of age), the employer still has certain obligations:

- **Part A of Form 16**: Part A contains details like employer's and employee's PAN, employer's TAN, details of tax deducted and deposited quarterly, and any other relevant details. Even if no tax is deducted, Part A should be issued to the employee.

- **Part B of Form 16**: Part B includes details of salary paid, other income, deductions allowed under the Income Tax Act, and tax payable or refund due. If no tax is deducted, Part B would show a zero amount of tax deducted.

Therefore, **both Part A and Part B of Form 16** should be issued to the employee, irrespective of whether any tax has been deducted. Part A is crucial as it reflects the TDS details (even if it is zero), and Part B provides a consolidated view of the income and deductions.

### 2. Understanding Part A in Form 16:

You mentioned downloading Part A from TRACES, where it is labeled as Annexure A and B without specific mention of Part A of Form 16. Here’s the clarification:

- **TRACES**: The Tax Information Network (TIN) Centralized Processing Cell (CPC) of the Income Tax Department provides Form 16 Part A as an Annexure to the Form 16 generated. It's correct that TRACES labels it as Annexure A and B, which together form the complete Form 16 Part A.

- **Employer's Responsibility**: The employer should download Part A from TRACES, which includes Annexure A (containing details like employer and employee information, TDS details, etc.) and Annexure B (comprising details of income under different heads, deductions, etc.).

- **Employee’s Perspective**: Employees receive a consolidated Form 16 from the employer, which includes both Part A and Part B. Part A, downloaded from TRACES, serves as proof of tax deduction and its deposit with the government.

### Conclusion:

- **Issuance**: Employers should issue Form 16 to employees, including both Part A (downloaded from TRACES) and Part B, even if no tax is deducted.

- **TRACES Download**: Annexure A and B on TRACES together constitute Part A of Form 16, which employers download and issue to employees.

Ensure that Part A (Annexure A and B) is correctly downloaded and issued to employees along with Part B to comply with the Income Tax rules. This practice ensures transparency and compliance with tax regulations for both employers and employees.

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