TDS Not Deducted Due to Investments: How to Handle Form 16 and Salary Certificates?

If TDS is not deducted because the employee has submitted investment, now my query is:

1. How to issue Form 16?
2. If there is no need to issue Form 16, then how to prepare a salary certificate which contains investment details of the employee.

Ideally, you should issue a Form 16 with NIL TDS. A salary certificate contains only the total salary earned in a particular year by the employee.

You can issue Form No. 16 stating nil TDS and show all his investment details in the applicable section. Then issue him the said certificate. However, as no TDS has been deducted by you as stated above, it is not compulsory to issue the same. If the employee demands it for filing his IT Return, then issue it to him.

In case of any help on the same, do mail me. Else, contact me.

If salary details of one employee were not submitted while filing TDS return by mistake, and the employee asks for Form 16, can it be issued or do we need to send the details by filing a revised TDS return?

Hi everybody,

Form 16 is in two parts, i.e., Part A and Part B. Part A is generated from the TDS site only. This cannot be generated by you. It will be generated only if the tax deducted from salary is paid to the government. By way of declaration, his salary is not taxable. Then, you will have to issue Part B, which is the salary calculation and mandatory to be issued. Please visit the site to get the format of Part B and do the needful.

Ramakant