Understanding Form 16: Do I Need to File It Even Without Taxable Income?

Hi all seniors,

Below are some doubts that I have regarding Form 16 for income tax:

1. Is it mandatory to file Form 16 whether a person has taxable income or not?

2. In the case of taxable income, if there is some home loan and insurances that nullify the tax, is it necessary to file Form 16?

3. Also, providing Form 16 to the employees is the employer's duty, isn't it?

Please clarify all the above doubts at the earliest.

Tax: A fee charged by a government on a product, income, or activity. Income: The earning is taken as tax. To reduce tax, we are providing investment proofs, etc. The tax deducted and paid to the government is shown as Form 16. In this case, where the duty comes in, if you submit Form 16, you will receive benefits.

Hi Antony,

Thank you for your response. However, my doubt is still uncleared. What if I didn't get Form 16 from my employer? In my office, they say it's to be requested by the employee. What if I don't file the Form 16? In my case, I have a home loan and other details showing that I don't have any net taxable income.

I hope you can provide some clarification on these matters.

Best regards

What if I didn't get Form 16 from my employer...?? (In my office, they say it's to be requested by the employee.)

What is Form 16? As you all know, it is the most important form and regularly used by us. It is a certificate issued to you by your employer stating the details of the salary you have earned and the tax deducted on your behalf and paid to the government. If you are an employee of the company (which means you are on the company's payroll), you should receive your Form 16 by April 30 every year.

What if I don't file Form 16...?? (As in my case, I have a home loan and other details showing that I don't have any net taxable income.)

Your income tax will be more.

Hi Antony,

Now the IT Department has all the TDS details related to a particular PAN due to the e-TDS Return. Therefore, there is no need to file Form 16 with your return.

It is the employer's responsibility to issue Form 16 before the 30th of April each year. Failure to do so may result in penal provisions under the Income Tax Act.

The quantum of penalty is fixed under section 272A as follows:
272A(2) If any person fails –
(g) to furnish a certificate as required by section 203 or section 206C; they shall pay, by way of penalty, a sum of one hundred rupees for every day during which the failure continues:
Provided that the amount of penalty for failures related to a declaration mentioned in section 197A, a certificate as required by section 203 and returns under sections 206 and 206C shall not exceed the amount of tax deductible or collectible, as the case may be.

Regards,
Swati

Hi Swati,

As you said, it is the responsibility of the employer to provide Form 16. Is it for all employees or only for those who exceed the slab?

Thank you.

Hi Geeta,

The IT Act states that it is the duty of the employer to furnish Form-16 before April 30. However, there is a contradictory provision that the employer has to file Form-24 before the 15th of June and furnish the acknowledgement number in Form-16. How can the employer furnish the acknowledgment number before April 30 when there is time to obtain the same until June 15?

Srikant

Hi Srikant,

I don't know if any employer really furnishes Form-16 before 30th April. I got my Form-16 in June because our CA said employees can file it up to 31st July. So, from an employee's point of view, I am only aware of one thing - if they receive Form-16 by the end of June, then they should consider themselves lucky and working for a good company. :-D

As for the other question, I am not really aware of the answer. But I hope this clarifies.

Thanks,
Geeta

When you cross a certain income limit P.A., it is taxable. This slab is different for males and females. When you cross the income limit, if you show savings for that amount, then no tax will be deducted. But for that, you have to take Form 16 from the employer if your income is in taxable limits. Every employer will issue Form 16.

Hope this answers your query.

Regards,
Rajesh Nayak

Hi Sabana,

Please see my answers to the questions below.

Below are some doubts that I have regarding Form 16 for income tax:

1. Is it mandatory to file Form 16 whether a person has taxable income or not?

A-1, you need not file Form 16 if your income is not taxable or does not exceed the taxable limits (in your case, the taxable limit is 185,000). However, if your income is taxable or exceeds the taxable limits, you have to file an income tax return using Form No. ITR-1 based on the information provided in Form No. 16 by your company.

2. In the case of taxable income, if there are deductions from home loans and insurances that nullify the tax, is it necessary to file Form 16?

Yes, if your income is taxable or exceeds the taxable limits, you may claim deductions under section 80C of the Income Tax Act up to Rs. 1 lakh (185,000 + 100,000 = 285,000) for investments in certain policies, housing loan interest, FDs, etc. Additionally, you may also claim deductions under section 80D for mediclaim premiums up to Rs. 15,000. Therefore, there is no requirement to file Form No. 16.

3. Is it the employer's duty to provide Form 16 to the employees?

Yes, typically every company provides Form No. 16 to its current employees as well as those who have resigned during the year. If your company has deducted TDS, then it is the company's responsibility to provide Form No. 16 upon the employees' request within 30 days of the end of the financial year (i.e., before the 30th of April).

Make sure to obtain Form No. 16 from your company as it will be helpful for filing income tax returns and applying for loans from banks.

Amjadkhan Shaikh

Currently, there is no need to attach Form 16 along with your Income Tax returns. However, in case there is a refund claim, it would be advisable to attach Form 16. Additionally, you will need Form 16 or a Tax calculation statement to fill out your tax returns.

Thank you for all your responses.

In my case, since I didn't remind or request for Form 16, I didn't receive the same from my accountant (employer). Even when I asked two days ago, I was informed that it's not necessary to submit Income Tax Returns (ITR) when there is no tax payable.

Today is July 31st, the last day to submit ITR, and I don't seem to have any chance of getting Form 16 to submit my ITR. Under these circumstances, I heard that it can be filed together next year. Is that correct?

One more point... there was no TDS deducted for me, so only when TDS is deducted, then it's the duty of the employer to give Form 16... is it...??

Hi,

It is the responsibility of the employer to give Form 16 if the employee has taxable income and tax deducted at source (TDS). Previously, it was required to attach Form 16 with the Saral form when filing the IT return. Now, the IT Department has eliminated the requirement of attaching Form 16 if the assessee does not receive any refund of excess tax paid.

Regards,
T. Mahendar Reddy

You need not attach your Form-16 with your IT return, but you must have it for your records. The details to be mentioned in the ITR-1 are derived from Form-16.

Best Wishes,
Vasant Nair

Hi,

It is the employer's duty to provide Form 16. If your income is within the taxable slab, you can file your IT return with other financial services for a normal fee of Rs100.00; however, Form 16 must be attached.

Apurwa Kumar, as you mentioned, is it the responsibility of the employer to provide Form 16 to all employees or only to those who exceed the income slab?

Can anyone please tell me who should apply for Income Tax returns and how? I am sending the salaries of my employees. I have mentioned their monthly salary as well as their total CTC.

Salary Per Month: $8,000 Total CTC: $96,000

$9,000 $108,000

$14,000 $168,000

$15,600 $187,200

$23,333 $279,996

$25,000 $300,000

$27,600 $331,200

$30,000 $360,000

$40,000 $480,000

Dear
If your annual taxable income is below 2, 50,000/- salary then there will be no TAX.
If your taxable income is below 5, 00,000/- salary then, there will be rebate of Rs.5000/- and the total maximum tax will be 10%
on 2, 00,000/- i.e. 20,000/- but if your salary exceed even by 1/- rupees there won't be any rebate.
So you can say if the monthly gross salary upto 25k, there won't be any Tax.