Issuance of Form No.16 & E-TDS return of Salary (i.e.Form 24

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CA Sanjay Baheti (Querist)

24 November 2010 My client being proprietorship manufacturing Concern.The proprietor is Lady.From This concern Her Husband being qualified Mechanical Eng. getting Salary Rs.250000/- p.a.His total Investments u/s 80C of I.T. Act is Rs.100000/- So His total income is up to the Minimum Taxable limit of Rs.150000/-.Husband is looking after the Business.
Now query is whether the said Prop.concern can be issued Form No.16 to her husband or simply giving Salary certificate on Letter head of concern.
Moreover whether the concerned is supposed to file E-TDS return for Salary or not annualy.

S SRINIVASAN

S SRINIVASAN (Expert)

26 November 2010 Dear CA Sanjay Baheti
Eligiblity to deduct tax for individuals or HUFs is - to be covered u/s 44AB
Assuming ur client is covered u/s 44AB, she has to deduct tax. As the deductee of the ur client holds professional qualification, salary to her husband cannot be clubbed in the hands of ur client and also taxable income for ur client's deductee(husband) is less than the basic exemption no tds to be deducted. There is nothing wrong in issuing form 16. But mandatorily to be issued when there is TDS. Filing e-tds return is mandatory if ur client is having deductee strength of 50 and above in a quarter. When the deductee strength is less than 50, ur client can file paper return Any how it is recommended to file e-tds as it will give fast credit to the deductees

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