Can we issue form 16's if all details are correct but demand raised for deductor?
Replies (32)
Quick Summary
This discussion addresses the urgent need to issue Form 16s even when a TDS demand has been raised for the deductor. While Form 16s can technically be issued with a zero TDS amount if there's a demand, it's generally advised to wait until the correction statement is processed and the demand is resolved. The team is investigating the demand reason via TRACES and has filed a correction statement, with hopes for processing soon. The consensus is that Form 16s should not be issued until the correction is processed and the demand is cleared, to avoid confusion and ensure accuracy for employees.