Form No.16

TDS 225 views 2 replies
We are a Private Limited company. We need a clarification in issuing the Form No.16 to our employees. i.e we are deducting the TDS from employee's salary if applicable and issuing the Form No.16. Pls confirm is there any law to issue the Form No.16 for the other employees for whom TDS is not applicable. Pls clarify.
Replies (2)

IF TDS IS DEDUCTED THEN ONLY FORM 16 TO BE ISSUED 

Every employee has the right to obtain the TDS certificate, i.e., the Form 16, from her employer. And according to section 203 of the I-T Act, if tax was deducted on the employee’s income, the employer has to furnish Form 16. If there was no TDS on the income, then the employer can decline to issue the form of that employee. The Act further stipulates that the employer should issue the forms by 31 May after the end of the relevant financial year in which the income was paid and tax deducted. And if the forms are not issued by then, under section 272A(2)(g) of the I-T Act, the employer is liable to pay a penalty of Rs.100 per day of default till it issues the form. Employees can approach the accessing officer (AO), under whose jurisdiction she has to file her ITR, and give a written complaint against the defaulting employer. Based on the complaint, the AO may take appropriate action or initiate penalty proceedings against the employer.


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