One of our employee has earned Rs.78000/- last year(2011-12) at the same time he has earned Rs.300000/- as a consultant from some other firms and he has to file return. He is asking Form 16 to us .Are we responsible to give Form 16?I am asking this question because we have not deducted TDS from his salary because he earned only Rs 78000/- from our concern.
26 July 2012
If you are sure that he/she is your EMPLOYEE, then there is no harm in issuing form 16 with NO TDS. Form 16 is afteer all 'salary certificate'. However, you are not duty bound to issue the same under income tax as you have rightly pointed out that there is no TDS. See if you can give a salary certificate in place of form 16