regarding - form 16

This query is : Resolved

shankar balijepalli (Querist)
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10 February 2011 Dear sir/madam

My query is related to Form- 16. If an employe is drawing a gross salary of Rs.2,40,000/- p.a. and after all his sec 10 exemptions and u/s chapter VIA deductions, if his salary is below taxable limit i.e. Rs.1,60,000/- whether he should be given form-16, is it mandatory or not. He is govt. emp.

CA Shailesh Kumar Bhagat

CA Shailesh Kumar Bhagat (Expert)
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10 February 2011 No, Since there is nil TDS, no form 16.

CA SIDDHARTH MEHRA

CA SIDDHARTH MEHRA (Expert)
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10 February 2011 May I kindly add that although it is not mandatory in accordance with the Income Tax Act, 1961 that Form 16 be issued to the employee under the given circumstances, nonetheless, practically, it will be issued. Moreso because the employee will provide his investment proofs to his employer, who will, only after due verification of the same, will not deduct the tax on the salary income, and therefore, be under a 'customary' obligation to issue Form 16.

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