form 16 for nil tax
This query is : Resolved
04 July 2008
Hi, I want to know Form 16- IS it NECESSARY TO ISSUE FORM 16 FOR NIL TAX OF AN EMPLOYEE.
Please advice.
Please advice.
CA Abhishek Tyagi
(Expert)
04 July 2008
Hi Shyam,
Basically Form 16 is meant for the declaration/certification that a certain amount is paid to employee as salary & tds has been deducted on that under section 192 B of income tax act. Thus if there is no tds that it is not mandatory to issue the tds certificate(Form-16) however employer on its own discretion may issue nil tds form. In such type of cases instead of the form 16 employer should issue salary certificate.
Basically Form 16 is meant for the declaration/certification that a certain amount is paid to employee as salary & tds has been deducted on that under section 192 B of income tax act. Thus if there is no tds that it is not mandatory to issue the tds certificate(Form-16) however employer on its own discretion may issue nil tds form. In such type of cases instead of the form 16 employer should issue salary certificate.
05 July 2008
Hi Shyam,
I am not agree with Mr. Abhishek's view for the second part. What he is saying that form no. 16 is certification by the co., is right. But instead of Form No. 16 Just a certificate from the co. is not right, The co. must issue Form No. 16 stating that the employees income is not taxable & hence no TDS is Deducted.
I am not agree with Mr. Abhishek's view for the second part. What he is saying that form no. 16 is certification by the co., is right. But instead of Form No. 16 Just a certificate from the co. is not right, The co. must issue Form No. 16 stating that the employees income is not taxable & hence no TDS is Deducted.
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Late CA Sampat Jain
(Expert)
05 July 2008
FNO 16 IS TDS CERTIFICATE , NO TDS NO FORM NO 16
CA Abhishek Tyagi
(Expert)
06 July 2008
Yes i m fully agree with Sampat's view.
IF the tds is nil then there is no need to issue the tds certificate.
IF the tds is nil then there is no need to issue the tds certificate.
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