1. Do we need report Salary of Employees whose gross salary is above taxable limit (i.e. Rs.2,50,000/-) but after Savings under Section 80C and Other Sections, the taxable Salary is below Rs.2,50,000/- in Annexure II of Form 24Q for Quarter 4?
2. Do we need to issue Form 16 to these Employees?
Yes , we have to show nd issue form 16
1- Reporting salary on which no tax is deductible/deducted is not mandatory while filing 24Q.
2- No need to issue form 16 to such employees.
Employer can decline to issue Form 16 in case there is no deduction of tax at source.It is clear from a bare reading of section 203 of the I T Act and the relevant rule 31 of IT Rule .
Liability to give a certificate of tax deduction is given in Section 203 of the I T Act .For employer, specific provision is given in sub-section 2 of section 203 of the I T Act.
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