Form 16 vs salary certificate...
This query is : Resolved
14 February 2014
Dear All,
My friends gross salary(for FY 2012-13) is more than Rs 270000/-. He had submitted Homeloane related documents to employer hence TDS has not been deducted from salary.
Now in this case should the employer issue a Form 16? Or Salary certificate on letter head?
On the other hand, employer had provided a Form 16 which
1)IS NOT in the prescribed format(just a simple document contain details about salary and deductions)
2)DOES NOT contain TAN/PAN
3)IS NOT signed by Account officer (just stamped and signed by senear officer).
The most shoking thing, the employer is state goverment.
Can you plese let know,how to submit the ITR in this case?
Please do the needful.
My friends gross salary(for FY 2012-13) is more than Rs 270000/-. He had submitted Homeloane related documents to employer hence TDS has not been deducted from salary.
Now in this case should the employer issue a Form 16? Or Salary certificate on letter head?
On the other hand, employer had provided a Form 16 which
1)IS NOT in the prescribed format(just a simple document contain details about salary and deductions)
2)DOES NOT contain TAN/PAN
3)IS NOT signed by Account officer (just stamped and signed by senear officer).
The most shoking thing, the employer is state goverment.
Can you plese let know,how to submit the ITR in this case?
Please do the needful.
14 February 2014
Now a days there is no salary certificate and in all cases form no. 16 should be issued if TDS has been deducted. In case where there is no TDS then the salary will not appear in form No 16 and it will not be generated through NET provided the employer feeds in the data. So the salary certificate help the person concerned to take any loan from any bank.
03 March 2014
Let me ask the questions in different way.
1) TDS has not been deducted because of Home loan proof submitted to employer. (If Home loan proof would have not submitted, TDS would have surly deducted) In this case, is the employer liable to issue Form 16?
2) Is it is mandatory to have the Form 16 only in prescribed format?
3) Is there any Rule/Act that obligate the employer to provide Form 16 in prescribed format only?
4) Who is the signing Authority for Form 16? Is it allowed that there are multiple signing authorities for single TAN?
5) If the form 16 has been signed by a senior manager/officer but not a signing authority, is such Form 16 valid?
Please do the needful.
1) TDS has not been deducted because of Home loan proof submitted to employer. (If Home loan proof would have not submitted, TDS would have surly deducted) In this case, is the employer liable to issue Form 16?
2) Is it is mandatory to have the Form 16 only in prescribed format?
3) Is there any Rule/Act that obligate the employer to provide Form 16 in prescribed format only?
4) Who is the signing Authority for Form 16? Is it allowed that there are multiple signing authorities for single TAN?
5) If the form 16 has been signed by a senior manager/officer but not a signing authority, is such Form 16 valid?
Please do the needful.
25 July 2024
Let's address each of your questions regarding Form 16 and salary certificate:
1. **Issuance of Form 16 without TDS Deduction:**
- Form 16 is a certificate issued by the employer to the employee detailing the salary paid and TDS deducted. If TDS has not been deducted due to submission of home loan proof or any other valid reason, the employer is still required to issue Form 16 to the employee.
- Form 16 includes details of salary paid, exemptions, deductions claimed, and the amount of TDS deducted (if any). Even if no TDS is deducted, Form 16 will state this fact.
2. **Mandatory Format for Form 16:**
- Yes, Form 16 has a prescribed format as per Rule 31(1)(a) of the Income Tax Rules, 1962. The format ensures uniformity and compliance with tax laws.
- The prescribed format includes Part A (containing details of tax deducted and deposited with the government) and Part B (containing details of salary paid, other income, deductions, etc.).
3. **Legal Requirement for Prescribed Format:**
- Rule 31(1)(a) of the Income Tax Rules mandates that Form 16 should be issued in the prescribed format. This rule ensures that the form contains all necessary information required for tax computation and verification.
4. **Signing Authority for Form 16:**
- The signing authority for Form 16 is generally the employer or an authorized person designated by the employer. The person signing Form 16 should be competent to do so and should have access to the necessary financial and payroll information.
- It is possible for multiple individuals to be authorized to sign Form 16, especially in large organizations where payroll and tax compliance responsibilities are distributed among different departments or personnel.
5. **Validity of Form 16 Signed by Senior Manager/Officer:**
- Form 16 should ideally be signed by the authorized signatory designated by the employer. This could be the CFO, Finance Manager, HR Head, or any other authorized personnel as per internal delegation of authority.
- If a senior manager or officer who is not the designated signing authority signs Form 16, it may still be considered valid if that person is authorized by the employer to do so. However, to ensure compliance and avoid issues during tax assessments, it's preferable for Form 16 to be signed by the designated signing authority.
In summary, Form 16 must be issued by the employer even if no TDS is deducted due to valid reasons like submission of home loan proofs. It must adhere to the prescribed format as per Rule 31(1)(a) of the Income Tax Rules. The signing authority should be designated by the employer, and multiple signing authorities may exist depending on the organizational structure. It's crucial for Form 16 to be signed by the authorized person to ensure its validity and compliance with tax regulations.
1. **Issuance of Form 16 without TDS Deduction:**
- Form 16 is a certificate issued by the employer to the employee detailing the salary paid and TDS deducted. If TDS has not been deducted due to submission of home loan proof or any other valid reason, the employer is still required to issue Form 16 to the employee.
- Form 16 includes details of salary paid, exemptions, deductions claimed, and the amount of TDS deducted (if any). Even if no TDS is deducted, Form 16 will state this fact.
2. **Mandatory Format for Form 16:**
- Yes, Form 16 has a prescribed format as per Rule 31(1)(a) of the Income Tax Rules, 1962. The format ensures uniformity and compliance with tax laws.
- The prescribed format includes Part A (containing details of tax deducted and deposited with the government) and Part B (containing details of salary paid, other income, deductions, etc.).
3. **Legal Requirement for Prescribed Format:**
- Rule 31(1)(a) of the Income Tax Rules mandates that Form 16 should be issued in the prescribed format. This rule ensures that the form contains all necessary information required for tax computation and verification.
4. **Signing Authority for Form 16:**
- The signing authority for Form 16 is generally the employer or an authorized person designated by the employer. The person signing Form 16 should be competent to do so and should have access to the necessary financial and payroll information.
- It is possible for multiple individuals to be authorized to sign Form 16, especially in large organizations where payroll and tax compliance responsibilities are distributed among different departments or personnel.
5. **Validity of Form 16 Signed by Senior Manager/Officer:**
- Form 16 should ideally be signed by the authorized signatory designated by the employer. This could be the CFO, Finance Manager, HR Head, or any other authorized personnel as per internal delegation of authority.
- If a senior manager or officer who is not the designated signing authority signs Form 16, it may still be considered valid if that person is authorized by the employer to do so. However, to ensure compliance and avoid issues during tax assessments, it's preferable for Form 16 to be signed by the designated signing authority.
In summary, Form 16 must be issued by the employer even if no TDS is deducted due to valid reasons like submission of home loan proofs. It must adhere to the prescribed format as per Rule 31(1)(a) of the Income Tax Rules. The signing authority should be designated by the employer, and multiple signing authorities may exist depending on the organizational structure. It's crucial for Form 16 to be signed by the authorized person to ensure its validity and compliance with tax regulations.
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