FORM 16

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This query is : Resolved

Santhosh (Querist)

03 July 2009 Can a company issue FORM 16 with "TAX PAYABLE"( in tax payable/refund column).

Suppose tax payable by employee is Rs 5000 and employer has deducted only Rs 4900. Can he issu Form 16 showing Rs 100 as payable????

chetan soni

chetan soni (Expert)

03 July 2009 Yes, you can issue such form 16.

But keep that in that in mind that salary income to the extent of Rs. 100 tax is disallowed in companies income tax computation u/s 40(ia).

Also all this will be in reporting of companies reporting part.

CA.Tarun Maheshwari

CA.Tarun Maheshwari (Expert)

03 July 2009 No. It can not be done in my opinion, as it would result into non compliances of TDS rules also.

Ratan Sharma

Ratan Sharma (Expert)

03 July 2009 Hi,
It can be done. If the TDS is short deducted then the employer can issue such certificate. Although it is a non compliance of TDS rules but so far as the issuance of Form No. 16 is concerned, there is no bar as such. The employer can issue such certificate.

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