Tax Deduction Account Number (TAN)

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This query is : Resolved

GIRISH SHARMA (Querist)

18 April 2009 Dear Sir,

One client (proprietorship concern) wants to issue Form 16 to its employees who wish to file their I-T Returns. However, the salary income of those employees are below the taxable limit & hence no TDS was effected during the P-Y 08-09.

Can the employer issue Form 16 if he DOESNOT possess TAN ?

Note: No TDS Liability under any other section also.

Kindly reply asap.

Regards
G. Sharma

VINEESH KHANNA

VINEESH KHANNA (Expert)

18 April 2009
Yes, employer can issue either Form 16 or simply a letter in their letter head titled "To whomsoever it may concern" and issue it to employee.

GIRISH SHARMA

GIRISH SHARMA (Querist)

18 April 2009 Dear Vineesh ... Thanks for the reply.

Is there any circular/Notification etc. on this issue ?

If the employer has take TAN then should be surrender the same (as there is no other payments on which he is required to deduct tax) ?

If the same is NOT SURRENDERED then would he be reqd. to file NIL TDS returns ?

Deepak Goel

Deepak Goel (Expert)

19 April 2009 I am agree with Mr. Khanna.

If a firm or individual take TAN then he cannot surrender the same untill the business is closed.

There is no need to submit NIL TDS return.

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