Is Your Employer Required to Give You TDS Form No. 16 If No TDS Is Deducted?

If no TDS is deducted from the salary, is the employer bound to provide TDS Form No. 16?

Understanding Form 16 and Tax Deduction

Form 16 pertains to tax deducted at source from income. If there is no income tax deduction, then Form 16 is not issued.

The word 'Bound' is very strong. Check if the organization is TAN registered. Are other staff getting Form 16? If yes, all employees will get Form 16, i.e., with a NIL TDS certificate. In another couple of weeks, one should expect Form 16 from their employers, even someone whose TDS is NIL gets it.

Regards,
Pankaj

To the best of my knowledge, all TDS has to now be generated from the income tax site. So, it will not generate if there is no TDS deducted (as it will not be on the website). I am told manual TDS certificates are not allowed from this year for all company assesses.

If the net salary income of the employee crosses the maximum exempted tax ceiling (e.g., Rs. 200,000), the employer shall issue a TDS certificate. Even if the final tax liability of the employee is zero, the employer shall issue a zero TDS Form 16. The employer can generate a zero TDS Form 16 from the TDS CPC website. In order to do this, the employer should have uploaded the relevant information of the particular employee (with zero TDS) on the TIN-NSDL website.

Regards,

Kindly note that if your gross income exceeds Rs. 2.00 lakhs (not taxable), then you are eligible to receive Form 16 by law.

Regards,
Ramakant

I cross-checked with our auditors. TDS certificates are only for those from whose salary TDS has been deducted. You cannot give a NIL TDS certificate; it is illegal.