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Form 16

CA Pramod Singhal (CHARTERED ACCOUNTANTS) (68 Points)

15 June 2007

We have a company and not deduct the T.D.S. as per employee declartion for employee.

But now the employee demanded the Form-16 but he has not full investment U/s 80C and in form-16 (Tax Liability arise).

Is there any liability of company before issue form-16 or not?

Urgent.

Thnks in adv.

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17 Replies

Pat_mdje (Accountant) (19 Points)
Replied 15 June 2007

AFAFAFAFSFSF

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CA Pramod Singhal (CHARTERED ACCOUNTANTS) (68 Points)
Replied 16 June 2007

don't gossip, be serious about the Q.

saravanan (proprietor) (71 Points)
Replied 16 June 2007

tds compulsory deducted from employees, if not deducted the entiry amount of salary paid to employees is inadmisible expenses asper IT Act. so, now immediately deduct the tds amount and remit the same with interest and file the e-filing tds. and after issue form 16

vivek modi (executive) (22 Points)
Replied 18 June 2007

Form 16 can be issued even if you have not deducted TDS on Salary

Sonal Boochra (CA Practice ) (16 Points)
Replied 18 June 2007

If the gross total income of your company's employee is more than Rs. 100000/- u can issue them form no. 16 with details of investments etc. but if there is a tax payble in form 16 then there is a panlty on your company. and the last date of issueing form 16 to your employees is 30.04.2007 . take care of this

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Rajeev Kumar Pal (Job) (13 Points)
Replied 18 June 2007

Dear Pramod Ji If employee is not providing the investment detail as he had decleared. Than there is no issue in giving him form 16, as we are dudcting his tds on the basis of declaration given by him and this is not a return. If any tax would be there he would pay on regular assessment. So we should not worry about his investment. Thanks

Karthik (28 Points)
Replied 18 June 2007

Dear Mr Pramod TDS is mandatorily required to be deducted by a corporate entity. If not deducted the entiry amount of salary paid to employees is inadmisible expenses asper IT Act. So goa head deucting the TDS and after remittance issue the F-16

Ashu Gupta (Chartered Accountant) (40 Points)
Replied 19 June 2007

Hi all, If u all guys who are saying that if TDS is not deducted on salaries payable to a resident then salary amount will be disallowed u/s 40 then read the act clearly, as it states that " any payment which is chargeable under the head "Salaries" , if it is payable - a) outside India, or b) to a non-resident, and if the tax has not been paid thereon nor deducted therefrom under Chapter XVII - B" then only the expenditure is disallowed. That means if TDS is not deducted on salaries of residents then there is no disallowance. Take Care

Narasimha Rao (53 Points)
Replied 19 June 2007

Yes, it is the liability of the employer to issue form16 for those who comes under tax net. Form 16 shall be issued to an employee on his request. At the same time the company has to consider the tax declarations (proposals during the year) given by the employee before calculating tax and however the form16 will be issued only on the savings details (proofs) produced by the employee.

Ajay Jain (31 Points)
Replied 19 June 2007

EMPOLYER IS RESPONCIABLE FOR DEDUCTION OF tds U/S 192 OF INCOME TAX ACT

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tarun (Student) (196 Points)
Replied 20 June 2007

hi Pramod, it is the duty of the employer to deduct TDS from salary, otherwise auditors will make a objection in it. and will not ok the audit report.. They will force the co. to deduct the tds and deposit it with interest , b,coz they have to mention it in audit report that the co. has no dues to any department. So, that all i want to say..

Rajeev Chand (Whole Time Practice) (13 Points)
Replied 14 July 2007

Yes you are required ti Income tax other wise it would be treated as default in deduction of tax

Dsr (37 Points)
Replied 16 July 2007

If u go through with Annual Circular issued by CBDT on Salary Computation, it is mentioned that if TDS is not deducted, there is no requirement of issue of TDS to such employee.