Hello Friends,
I am an HR in IT firm and have a query related to Form 16. An employee is serving his notice period in our company and he is asking us to provide him Form 16 as he will show it in another company where he is selected but our company is not deducting TDS, though his salary is 36K per month. i know that he is liable for TDS deduction.
what should I do in this case. Should i issue him Form 16 or not?
If yes, Kindly Share me the format of the same.
Thanks & Regards
Ruchi
HR
From India, Ludhiana
1I am an HR in IT firm and have a query related to Form 16. An employee is serving his notice period in our company and he is asking us to provide him Form 16 as he will show it in another company where he is selected but our company is not deducting TDS, though his salary is 36K per month. i know that he is liable for TDS deduction.
what should I do in this case. Should i issue him Form 16 or not?
If yes, Kindly Share me the format of the same.
Thanks & Regards
Ruchi
HR
From India, Ludhiana
Hi Ruchi
If any employee receives Taxable Income above 2,50,000/- PA then Company is liable to deduct tax from the employee & remit to income Tax department. As you mentioned as his salary as 36K certainly he is Taxable employee only.
If at all you had deducted TDS then yes its your responsibility to issue Form16 If not deducted then its optional to issue
From India, Bangalore
If any employee receives Taxable Income above 2,50,000/- PA then Company is liable to deduct tax from the employee & remit to income Tax department. As you mentioned as his salary as 36K certainly he is Taxable employee only.
If at all you had deducted TDS then yes its your responsibility to issue Form16 If not deducted then its optional to issue
From India, Bangalore
Hi Ruchi,
why the employee is asking for TDS certificate (form 16) as No TDS was deduct from his/her salary however its your company's fault Not to deduct TDS also the 30% of salary portion shall be disallowed under section 40(a)(ia)
in income tax you have two option now either be ready for 30% disallowances or deduct the TDS immediately & remit the same to govt to avoid 30% disallowances after that you can revise the TDS return with appropriare quarter then you can download form 16 from TDS cpc side
From India, Basti
why the employee is asking for TDS certificate (form 16) as No TDS was deduct from his/her salary however its your company's fault Not to deduct TDS also the 30% of salary portion shall be disallowed under section 40(a)(ia)
in income tax you have two option now either be ready for 30% disallowances or deduct the TDS immediately & remit the same to govt to avoid 30% disallowances after that you can revise the TDS return with appropriare quarter then you can download form 16 from TDS cpc side
From India, Basti
Let us get the first point very clear. Form 16 can only be issued if TDS has been deducted from the employees salary.
Further, there is no option for you to issue a TDS certificate made manually. The tedious certificates and now electronically generated on the income tax website, which you have to download and forward to the concerned person.
So if you have not deducted the tedious, are you cannot give him a form 16. If the tedious amount is lower than his full and final settlement, are you can adjust the amount from him. If there is no amount due to him or if the amount due is much lesser then the TDS amount, you better take the matter up to the top management and ask them what you need to do.
The impact of non-deduction of TDS has been explained in the post above
From India, Mumbai
Further, there is no option for you to issue a TDS certificate made manually. The tedious certificates and now electronically generated on the income tax website, which you have to download and forward to the concerned person.
So if you have not deducted the tedious, are you cannot give him a form 16. If the tedious amount is lower than his full and final settlement, are you can adjust the amount from him. If there is no amount due to him or if the amount due is much lesser then the TDS amount, you better take the matter up to the top management and ask them what you need to do.
The impact of non-deduction of TDS has been explained in the post above
From India, Mumbai
Form 16 can be claimed by any employee whether TDS is deducted or not. Some time Form 16 is used as salary certificate and in that case Form 16 (Part B) can be generated and issued even if there is no deduction. A proactive Hr always keeps track who are all shall insist Form 16 even if they do not have taxable income.In this case you can ask the gentleman to provide his savings details for that particular FY and compute if his income comes under taxable bracket or not. If the taxable income still attracts tax then you can ask the gentleman to pay the tax amount to you (off course with interest @1.5% per month) and accordingly deposit the same with the department, revise the return, generate Form 16 from the department and issue. In case if the gentleman is not willing to pay the Tax or the interest portion you may explore issue Salary certificate in lieu of Form 16 and off course with consultation with your accounts department /seniors.
Thanks & regards
From India, Kolkata
Thanks & regards
From India, Kolkata
Asru said right. Company has to issue Form 16 wheather it is taxable income / nontaxable income. But you have to ask that employee to submit the investment proof, if any. Regards, Narayan Patil
From India, Pune
From India, Pune
Ashu, Narayan
Both of you are misinformed.
Form 16 is an official and statutory document.
You are not allowed to issue it at your whims and fancy.
In face, as the law stands today, you can not issue form 16 at all. It is issued by the income tax department and you can only download and forward to the concerned employee.
Ask your auditor and he will confirm the same.
Also you can not make your salary certificate look like form16. You can be persecuted for fraud by the income tax department.
The rules you are referring to were considered acceptable about 10 years ago. The current law is different.
From India, Mumbai
Both of you are misinformed.
Form 16 is an official and statutory document.
You are not allowed to issue it at your whims and fancy.
In face, as the law stands today, you can not issue form 16 at all. It is issued by the income tax department and you can only download and forward to the concerned employee.
Ask your auditor and he will confirm the same.
Also you can not make your salary certificate look like form16. You can be persecuted for fraud by the income tax department.
The rules you are referring to were considered acceptable about 10 years ago. The current law is different.
From India, Mumbai
Dear Ruchi,
As per your query, it is clear that the Employee comes under the Tax Liability, It is Employer responisbity to provide the Form 16 if Employer has deducting the Tds.
You have to take a undersigned from that Employee about his Savings & on the basis of that deducted the Tax & Issue him Form-16/Tds Computation sheet.
Thanks
Shubham
From India, Faridabad
As per your query, it is clear that the Employee comes under the Tax Liability, It is Employer responisbity to provide the Form 16 if Employer has deducting the Tds.
You have to take a undersigned from that Employee about his Savings & on the basis of that deducted the Tax & Issue him Form-16/Tds Computation sheet.
Thanks
Shubham
From India, Faridabad
Actually, Saswatabanerjee, you are the one misinformed.
Form 16 comes in two parts:
Form 16 part A, which has to be downloaded from the Income tax website, and is issuable only if TDS has been deducted and paid into the credit of the employee's PAN.
and,
Form 16 part B, which is prepared and issued to all employees of the company.
So, every employee has to get a Form 16 part B, while those employees whose TDS has been deducted will also received a Form 16 part A.
From India, Mumbai
Form 16 comes in two parts:
Form 16 part A, which has to be downloaded from the Income tax website, and is issuable only if TDS has been deducted and paid into the credit of the employee's PAN.
and,
Form 16 part B, which is prepared and issued to all employees of the company.
So, every employee has to get a Form 16 part B, while those employees whose TDS has been deducted will also received a Form 16 part A.
From India, Mumbai
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