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Salary tds

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T. Venu Madhav

Manager-Finance & Accounts

29 Points Posted on 26 June 2014

Dear Experts and Friends

This is regarding Form 16 Part A . One of my Colleague hwo receives Form 16 orgues that the amount mentioned in Part A of Form 16 must be equal to the Taxable Salary and not the Gross Salary he received. I asked him about the matter he is saying that his auditor in delhi told him the employer has to mention the Taxavle Salary in Form 16 Part A and Not the Gross Salary Received. His Vertion is like this. Employer has to adjust the Section 10 allowances and Section 16(ii) deduction from Quter 4 Salary mentioned in part A of Form 16 and net has to be shown in the Part A .

I wnat to Know the above argument is corrct. if correct please post the article where it is mentioned

Replies (1)

Tribhuvan Aditya Singh

Student as well as Self-employed

3853 Points Posted on 26 June 2014

completely incorrect. it is never necessary that the amount in part a of form 16 should be equal to taxable salary. it can be less or equal to gross salary or even equal to net salary paid for the year depending on how the employer feeds data in tds return. now the ques. is how can it be less? suppose tds is deducted for 8 out of 12 months even after the employee has worked for whole year and the employer has reported only those 8 in tds return but has reported total salary in annex 2 of tds return. then part a of form 16 will give details of only those 8 deductions. and then total of part a will be less than taxable salary.