01 May 2009
If the income of the employee is more then taxable limit and Tax is becomes NIL due to 80C hence Tax is not deducted form 16 needs to be deducted. In cases where the income of the employee is less then the thresh hold limit a form 16 as mentioned by Praveen can be issued or a certificate on the letter head can be issued. it is better to issue a form 16.
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