25 February 2010
Form 16 is the proof that ur an employee of that company and also it serves as the purpose for the Income declaration in the absesnce of Salary slips or the salry statement whichis issued to all the employees . Hence it is a proof of the entire years income and also the allowances, in short it is a compendium of the salary and the allowances attached to it which is paid to the employees for a given financial year. It is mandatory as the provisions of Income tax act 1961 to issue form 16 as per section 192
Should u have any queries pls feel free to ask the same....
25 February 2010
Yeah. If the employee demands, then its compulsory to issue TDS certificate. If it is NIL, then you can chose any option, either issue a NIL TDS Form 16, or give a salary certificate on company's letterhead. Both theoptions are equally valid.
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