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Company not giving Form 16

Riya K S (Student) (76 Points)

31 August 2010

Hello Friends,

Your help and advice is needed. For the Financial Year 2009-10, the company hasn't given Form 16 to its ex- employee till now, due to which individual return couldn't be filed upto 31st july. The company has also deducted TDS and haven't deposited yet ( Checked from Form 26AS). What remedies are available to the individual??? Even after repeated request and reminder from the assessee, the company is not issuing Form 16.

Company keeps a check on assessee's tax by way of TDS to avoid tax theft, who'll keep check on company's TDS theft????

How can belated return be filed without Form 16??? What to do??

Helppppppppppppppp

Thanx everyone :)

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3 Replies

Prasad R (CA Final) (2128 Points)
Replied 31 August 2010

Dear Riya,

In case the company doesn't deposit the TDS deducted from the employee , section 201 recovery with interest by cent govt, 276B rigorous imprisonment and penalty under sec 221 gets attracted to the employer company .

In Bombay High court in the case of Yashpal Sahni, this matter was discussed here is the link of the text of the case

https://www.cainindia.org/news/8_2007/where_a_company_deducts_tax_at_source_tds_from_the_salary_payable_to_an_employee_but_fails_to_deposit_the_said_amount_into_the_government_treasury_the_revenue_can_not_recover_the_tds_amount_with_interest_from_the_concerned_employee.html

The above case will be useful once a return has been filed and the department issues a demand for recovery of tax. The onus on the Assessee will be only to prove that tax was deducted bt not deposited to govt which can be proved through the Pay in slip, bank account and the offer letter.

In your case u may also file an online complaint to the consumer court on this matter and see what they have to reply on this . This is the link to file the complaint

https://www.consumercourt.in/private-institute/4737-complaint-against-employer-6.html.

See if it helps.

These are my views u may look for others opinion on this regard. Something more stringent should be there in cases like what u have discussed where employer after deducting TDS doesn't deposit it to the govt and doesn't issue form 16.

Looking forward for other members reply on this matter.

Best Wishes

Prasad R

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PRATIBHA BAGAL (Asst. Manager finance & Taxation) (62 Points)
Replied 01 September 2010

IF ANY COMPANY NOT GIVEN FORM 16, OF EMPLOYEE AND NO ANY TDS DEDUCTED AGAINST THEM, NIL TDS IN THAT CASE WHAT TO DO, CAN WE SUBMIT OUR RETURN WITHOUT FORM16.

Ashish Pradip Bochia (CA Practice ) (16 Points)
Replied 01 September 2010

Originally posted by : shivdarshan
	IF ANY COMPANY NOT GIVEN FORM 16, OF EMPLOYEE AND NO ANY TDS DEDUCTED AGAINST THEM, NIL TDS IN THAT CASE WHAT TO DO, CAN WE SUBMIT OUR RETURN WITHOUT FORM16.

don’t worry, check form 26as in income tax site if it appears there that TDS has been deducted then no one can stop you from getting credit of it as the information there is update only when the company or any other person deducting TDS files TDS return (which is submitted in CD to NSDL department), also in return filling Form 16 is not to be attached. In case TDS should be deducted and it is not appearing in 26AS then you need to communicate with the company for this matter