1. Is there any provision for levying penalty on the employer for not providing Form 16 in time. If yes, under which section and amount?
2. What is the time limit to provide Form 16 by the employer to its employee?
3. What is the procedure for levying penalty for not providing Form 16 in time?
Under the provisions of section 203 of the Income Tax Act, 1961 read with rule 31A, Certificate of tax deducted at source is to be furnished within fifteen (15) days from the due date for furnishing the statement of tax deducted at source.
Failure to comply with the provisions of the Act will attract penalty under the provisions of section 272A of the Act, a sum of one hundred rupees for every day during which the failure continues.
Remember that penalty cannot exceed the TDS amount deducted for the quarter.
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