Form 16, no TDS deducted from salary

- Form 16 generated from the tax portal i.e. TRACES is considered as valid. In case of no TDS, you can issue printed Form 16 with the same format.

Hi,

Hope you are doing well !!

It can't be download from traces website It has to be given to employee by his employer only.

Part B of form 16 is manually prepared by employer. 

So, it is sufficient.

Hi

System generated Form 16, duly signed by authorized signatory, is to be issued,even when no tds is deducted.

Hope it helps 

You should add their name also in form 24Q and show as nil tds deduction and provide form 16 to them as well and part B is anyways generated by employer himself.

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Thank you

Hello,

Employer is required to mention employee's salary details, even if with nil TDS deduction, while filing their TDS returns. So that system generated Form 16 can be issued to the employees.

However, employer can issue printed Form 16 to the employees with no TDS deduction.

I hope this answer satisfies your requirement.

Regards,

CA Hunny Badlani

Hi,

Ideal scenario would be to report their salaries also in TDS return with nil TDS and generate form 16 normally as you do for other employees.

Hi,

At the time of filing the last quarter return for TDS, you have to report the salaries of all the employees including those whose tax deducted is Zero.

In such case, Part A will be generated for those employees too. Along with that you may attach computation prepared in Part B and issue the complete Form 16 certificate to the employee.

Thanks

Damini

Hello Sir,

Once Part A is downloaded from the TRACES site, the organization can create Form B, and issue the signed Form 16 to a zero tax employee.

Any organization can create Part B. However, for Part A to be available on the TRACES site, an organization has to include the employee record (including zero tax employees) in Annexure II of the fourth quarter (Jan – Mar) Form 24Q.

Form 16 is a legal form to be issued only if taxes are deducted from salary.  

Where taxes are not deducted, the employer can merely issue a simple letter/ certificate giving details of salary paid to the employee.  This can be manual/ electronic. 

Kindly note that in case the details of the employees are inserted in the ETDS return, the form 16 will be generated with TDS as zero.