Issue of form 16 to salaried employees
This query is : Resolved
18 April 2012
as per latest provisions,Form 16 downloaded
from NSDL can only be issued (for banks & companies).This procedure is done to avoid data mismatch.
1.Can company issue Form 16 to employees who did not have taxable income & thus these data are never reported under TDS returns.As in this case,there would be no TDS amount involved & accordingly no mismatch of TDS data.
2.if ans to question 1 is no,How to incorporate the yearly figures into last TDS qtr so that employees of aforesaid category can receive Form 16 downloaded from NSDL site.
from NSDL can only be issued (for banks & companies).This procedure is done to avoid data mismatch.
1.Can company issue Form 16 to employees who did not have taxable income & thus these data are never reported under TDS returns.As in this case,there would be no TDS amount involved & accordingly no mismatch of TDS data.
2.if ans to question 1 is no,How to incorporate the yearly figures into last TDS qtr so that employees of aforesaid category can receive Form 16 downloaded from NSDL site.
18 April 2012
I think you can give form 16 manually for this time
but you should have to used the Form 16 from NSDL website because you have only need to add. in Q4 annex. II non taxable income of employee by doing this you can save your time and whenever you need that soft copy you will easily take print of it
using facility is the best option
but you should have to used the Form 16 from NSDL website because you have only need to add. in Q4 annex. II non taxable income of employee by doing this you can save your time and whenever you need that soft copy you will easily take print of it
using facility is the best option
18 April 2012
If u have an employee to whom u have not deducted tax, then there is no requirement to issue Form 16.
18 April 2012
Mr Kishore,
Tax deducted or nor deducted, the company should give Form 16 because the employee may need Form 16 in order to get a loan from a bank in future.
Tax deducted or nor deducted, the company should give Form 16 because the employee may need Form 16 in order to get a loan from a bank in future.
18 April 2012
Dear Mr. Tushar,
But that is not mandatory. No where in Income tax it is told that eventhough not required, the employer has to given Form 16.
If the employee wants to get a loan from bank, he can show his payslip or income tax return filed.
For the sake of benefit of employee, employer cannot be made to suffer.
But that is not mandatory. No where in Income tax it is told that eventhough not required, the employer has to given Form 16.
If the employee wants to get a loan from bank, he can show his payslip or income tax return filed.
For the sake of benefit of employee, employer cannot be made to suffer.
18 April 2012
yes, i agree. It is not MANDATORY. It is only ADVISABLE.
It is a simple thing. It needs to big time. Almost all Good Corporate issue Form 16 to all employees. It is just a part of Corporate Ethics & good employee management.
It is a simple thing. It needs to big time. Almost all Good Corporate issue Form 16 to all employees. It is just a part of Corporate Ethics & good employee management.
18 April 2012
Even some big corporates also will not do this because, they have 100s of employees who dont fall under income tax. Hence, they wont keep on going and issuing a Form 16 to all employees.
I believe giving Form 16 will not be a Corporate Ethics.
Time Management is important for them.
I believe giving Form 16 will not be a Corporate Ethics.
Time Management is important for them.
19 April 2012
NSDL can issue Form No. 16 for only those employees from whom the company or the firm has deducted Tax. Because what you have loaded in your TDS return is re-generated by NSDL so the employees from whom you not deducted any tax or those employees whose income is below taxable limit cannot generate their form No. 16 from NSDL. Now, to get it done while filing your TDS return you file data for all the employees whether their income is taxable or not then yest it can be generated by NSDL
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19 April 2012
2.if ans to question 1 is no,How to incorporate the yearly figures into last TDS qtr so that employees of aforesaid category can receive Form 16 downloaded from NSDL site.
19 April 2012
if details for those employees were not entered while filing TDS returns for first 3 qtrs,is there any way to incorporate these into last 4th qtr return.
02 August 2024
### Issuing Form 16 and Addressing Data Mismatch Concerns
#### **1. Issuance of Form 16 to Employees Without Taxable Income**
**Yes, a company can issue Form 16 to employees who did not have taxable income**, even if there was no TDS deducted. The issuance of Form 16 is a statement of the total salary paid and deductions claimed, and it is not limited only to employees with taxable income or TDS.
**Key Points:**
- **Form 16** serves as a certificate of tax deducted at source and includes details of salary paid, TDS deducted, and other related information. Even if no TDS was deducted, the form can still be issued to show the salary details.
- **NSDL and TDS Data:** The NSDL Form 16 download primarily reflects TDS-related data. If no TDS was deducted, the form may not be generated automatically from the NSDL system. However, the company can still manually issue Form 16 to employees to provide a record of their salary.
#### **2. Incorporating Data into TDS Returns**
If the employees were not included in the TDS returns for the first three quarters and need to receive Form 16 from the NSDL site, the following steps should be taken:
**2.1. Filing of TDS Returns:**
- **Rectify the TDS Returns:** To include employees' details who were missed in the first three quarters, you will need to revise the TDS returns for those quarters. This involves correcting the earlier filed TDS returns by including the missing employees' details and resubmitting them.
**2.2. Process:**
1. **Prepare Revised Returns:** Prepare the revised TDS returns for the quarters where the data was missed. This includes filling out the missing employee details, salary payments, and other relevant information.
2. **Upload Revised Returns:** File the revised returns through the TDS filing portal (e.g., NSDL or any other TDS portal). Ensure all required details are accurately provided in the revised return.
3. **Generate Form 16:** Once the revised returns are processed and accepted, you can download Form 16 from the NSDL site. This will include the updated data reflecting the salary and TDS details for the employees.
**2.3. Timeline:**
- **Quarterly Returns:** Ensure that the revised returns are filed before the end of the financial year to ensure accurate data for Form 16 issuance.
- **Form 16 Generation:** After successful processing of revised returns, Form 16 can be generated and issued to employees.
#### **Additional Considerations:**
- **Manual Issuance:** If it is not possible to update the TDS returns and obtain Form 16 from NSDL, you can issue a manually prepared Form 16 to the employees showing their salary details and indicating that no TDS was deducted.
- **Tax Compliance:** Ensure all TDS-related compliance is met to avoid any discrepancies or penalties.
By following these steps, you can address the issue of missing employee details and ensure accurate Form 16 issuance for all employees.
#### **1. Issuance of Form 16 to Employees Without Taxable Income**
**Yes, a company can issue Form 16 to employees who did not have taxable income**, even if there was no TDS deducted. The issuance of Form 16 is a statement of the total salary paid and deductions claimed, and it is not limited only to employees with taxable income or TDS.
**Key Points:**
- **Form 16** serves as a certificate of tax deducted at source and includes details of salary paid, TDS deducted, and other related information. Even if no TDS was deducted, the form can still be issued to show the salary details.
- **NSDL and TDS Data:** The NSDL Form 16 download primarily reflects TDS-related data. If no TDS was deducted, the form may not be generated automatically from the NSDL system. However, the company can still manually issue Form 16 to employees to provide a record of their salary.
#### **2. Incorporating Data into TDS Returns**
If the employees were not included in the TDS returns for the first three quarters and need to receive Form 16 from the NSDL site, the following steps should be taken:
**2.1. Filing of TDS Returns:**
- **Rectify the TDS Returns:** To include employees' details who were missed in the first three quarters, you will need to revise the TDS returns for those quarters. This involves correcting the earlier filed TDS returns by including the missing employees' details and resubmitting them.
**2.2. Process:**
1. **Prepare Revised Returns:** Prepare the revised TDS returns for the quarters where the data was missed. This includes filling out the missing employee details, salary payments, and other relevant information.
2. **Upload Revised Returns:** File the revised returns through the TDS filing portal (e.g., NSDL or any other TDS portal). Ensure all required details are accurately provided in the revised return.
3. **Generate Form 16:** Once the revised returns are processed and accepted, you can download Form 16 from the NSDL site. This will include the updated data reflecting the salary and TDS details for the employees.
**2.3. Timeline:**
- **Quarterly Returns:** Ensure that the revised returns are filed before the end of the financial year to ensure accurate data for Form 16 issuance.
- **Form 16 Generation:** After successful processing of revised returns, Form 16 can be generated and issued to employees.
#### **Additional Considerations:**
- **Manual Issuance:** If it is not possible to update the TDS returns and obtain Form 16 from NSDL, you can issue a manually prepared Form 16 to the employees showing their salary details and indicating that no TDS was deducted.
- **Tax Compliance:** Ensure all TDS-related compliance is met to avoid any discrepancies or penalties.
By following these steps, you can address the issue of missing employee details and ensure accurate Form 16 issuance for all employees.
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