As per Income Tax Department, companies need not require to issue TDS Certificate (Form 16) where no Income Tax (TDS) is deducted. Please find the relevant provisions for your reference.
All Project Heads should intimate the same to their teams.
2.7 Issue of T.D.S. Certificate
2.7.1 Every person deducting tax at source is required as per Section
203 to furnish a certificate to the payee to the effect that tax has
been deducted along with certain other particulars. This certificate
is usually called the TDS certificate. Even the banks deducting tax
at the time of payment of pension are required to issue such
certificates. In case of employees receiving salary income including
pension, the certificate has to be issued in form No.16. The certificate
is to be issued in the deductor’s own stationery. However, there is
no obligation to issue TDS certificate in case of tax at source is not
deducted /deductible by virtue of claims of exemptions/ deductions