Employee Demanding Form 16: Is Management Right to Limit Issuance?

Dear Friends,

One of our employees is demanding Form 16. Management's stance is that only those coming under tax deduction will be issued.

Please help, is this the case?

Dear Friend,

Form 16 is issued only to those employees for whom you have deducted TDS, or in other words, whose income falls under deduction. If an employee requests Form 16, inquire about the purpose, and then suggest that they obtain a salary certificate from you instead. This approach will help resolve their issues effectively.

Prahlad Singh

Hi,

As per my company's rules, we had given Form 16 to all who needed it; it's not compulsory that only those whose TDS is deducted will get Form 16. Anyone earning a salary will need it for taking a loan or if they plan to go abroad, as Form 16 will be required.

Regards,
Trupti

Hi,

Form 16 should be given to all employees, whether they have taxable income or not. They may need to file Nil returns.

Regards,
Prachi

Dear Friend,

If we deducted tax from any employee during the financial year, it is mandatory to issue Form 16. However, we can issue Form 16 even if we did not deduct tax upon the employee's request.

Form 16AA is to be issued to individuals provided that in the case of an individual resident in India, where their income from salaries before allowing deductions under section 16 of the Income-tax Act, 1961 does not exceed rupees one lakh fifty thousand, the certificate of deduction of tax at source shall be in Form No. 16AA.

[QUOTE=george_ca; 1221068]

Form 16AA is to be issued. Provided that in the case of an individual resident in India, where his income from salaries before allowing deductions under section 16 of the Income-tax Act, 1961 does not exceed rupees one lakh fifty thousand, the certificate of deduction of tax at source shall be in Form No. 16AA;

Thank you!

Hi all,

I need expert advice on this question. Can anyone from an accounts background update us all on this?

Regards

Hi,

If the tax was not deducted by the employer, and if the taxable income of the employee is below the limit of Rs. 160,000/- in the case of male and Rs. 190,000/- in the case of female, a salary certificate can be issued for filing the tax return of employees. The attached format can be used for the certificate.

Dear friend,

I think that you are mixing up Form 16 & Form 16A. Form 16A is issued for TDS deduction only, whereas Form 16 can be issued to any employee, and it is just the Salary Certificate issued by any company to its employees. So, demanding Form 16 by any employee is completely justified, and he has the right to receive it from the company.

Thanks,
Amit Singhal

Under Section 203 of the Income Tax Act, 1961, Form 16 will be provided to individuals whose income is taxable, whether TDS has been deducted or not (due to investments or any other reasons where tax is not deducted). If an employee requests Form 16, you should simply issue a salary certificate.

[QUOTE=ssdonkar;1218826]
Dear Friend,

Form 16 is a certificate of TDS (as per the I.T. Act) and in your case, it will not apply. However, your employer must issue a salary statement mentioning April of the year to March 31st.

This is not a serious problem. There is no harm in issuing Form 16 to all employees, even to those who are not covered by the IT Act.

M.L. Barber