form no 16

Hi Sumit,

Company can issue form no.16 to the employee by stating in it non-deduction of TDS.

But one thing must require to keep in mind in this case:

A Company being an employer may have to suffer penal consequences for non deduction of TDS from taxable salary paid to employee. Penal consequences is summarized below:

a) Charging of interest u/s 201(1A) -

Under Section 201(1A) he is liable to pay simple interest @ 12% per annum on the amount of tax in arrear from the date on which such tax was deductible to the date on which such tax  is

actually paid, to the credit of Central Govt.

b) Penalty u/s 221- The assessee in default is liable to imposition

of penalty where the assessing officer is satisfied that the defaulter

has failed to deduct tax as required without good and sufficient

reason. The quantum of penalty is not to exceed the amount of tax

in arrear.

c) Penalty u/s 271C- A penalty equivalent to the amount of tax

the deductor has failed to deduct, is leviable u/s 271C. Such penalty

is however only leviable by a Joint Commissioner of Income Tax.

Mr. Sumit , when company has not deducted tax then what is requirement of form 16.

their is no requirement when there is no TDS on salary.

Yes, Mr. Ajay Kumar is correct in this case your company is in default for not deducting TDS on Salary.