Reliability as well as authenticity of Form 16

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

02 July 2011 I want to know about the reliability & Authenticity of Form 16 issued by an employer to its employees.whether AO can disallow certain expenditure exclusively incurred by employer and certified by him in form 16.like PF contribution deducted and deposited by employer.If any case law is there please also provide its refrence.

Shudhanshu Agrawal

Shudhanshu Agrawal (Expert)
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02 July 2011 I think your basic concept are not clear about Income Tax Act. Expenditures are claimed by the employers under PGBP. If an employer does not follow the Income Tax Act and Rules properly at the time of TDS deduction u/s 192 then he will be Assessee in default u/s 191. Form 16 is not the responsibility of the employee and it does not includes details of the expenses. Statutory deductions are not the expenditure but benefits to promote savings and security of social life.

Querist : Anonymous

Querist : Anonymous (Querist)

04 July 2011 Actually my query is from employees regard.An employee who filed his ROI on the basis of form 16 but concerned AO disclaims 80c expenditure and major portion of 80C deduction was from PF contribution, which employer deductes from salary & deposit it to PF Authority.I wants to know whether the AO should call such PF contribution information & neglet form 16 issued by employer.Also Assessee stays in abroad and it is quite difficult for him to give such information from his previous employer.Mainly i wants to know the authenticity & reliablity of form 16.

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Shudhanshu Agrawal

Shudhanshu Agrawal (Expert)
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05 July 2011 Provide me full facts about the employee, his residential status in India, company's place of business, details of notice issued by AO and reason of dis-allowance if mentioned in the notice.