I don't know what Ms. Ruchi Duseja would have learnt to solve her simple problem from the contradictory replies to each other of the members. In my view most of the responses have led to controversies, complications that would have caused confusions in the minds of several members of this forum. Some members say Form 16 not to be issued, others say to be issues and some others say Form 12B to be issued.
No doubt healthy discussion can help members to enhance their knowledge, but not such a discussion that creates more and more confusions due to replies made merely on guess of some members, who are not aware of the statutory provisions of law and rules. SO FAR 638 MEMBERS HAVE VIEWED THIS QUERY AND ANSWERS. NEEDLESS TO MENTION, THEY WOULD HAVE BEEN MORE CONFUSED THAT LEARNED SOMETHING OUT OF THE CONTROVERSIES CREATED BY VARIETIES OF ANSWES.
In fact, members who are not sure about the statutory provisions, should not have participated to answer the query merely on the basis of their guess to make the discussion more and more controversial, as that does not help enhancement of knowledge of anyone, rather confuse their minds about the provisions of law.
Naturally, it was not a question of procedures and practices that could have been solved by the varied personal experience of the members to enhance the knowledge and skill of membbers.
SO FAR AS THE ANSWER TO THE QUESTION IS CONCERNED, provisions about TDS certificate in Form No. 16 are very clear that IT HAS TO BE ISSUED ANNUALLY, not any time in between the AY or FY.
SO, THERE IS NO QUESTION OF ISSUE OF FORM 16 TO THE EMPLOYEE AFTER PAYMENT OF SALARY OF ONLY THREE MONTHS TO HIM.
At the most the employee can ask for the certificate of salary & perks drawn and deductions made out of his emoluments to help him submit his salary particulars of those months to his new employer. Form 16 would be issued only by the new employer by 31st May of the year after the close of the salary year/financial year.
From India, Delhi
387No doubt healthy discussion can help members to enhance their knowledge, but not such a discussion that creates more and more confusions due to replies made merely on guess of some members, who are not aware of the statutory provisions of law and rules. SO FAR 638 MEMBERS HAVE VIEWED THIS QUERY AND ANSWERS. NEEDLESS TO MENTION, THEY WOULD HAVE BEEN MORE CONFUSED THAT LEARNED SOMETHING OUT OF THE CONTROVERSIES CREATED BY VARIETIES OF ANSWES.
In fact, members who are not sure about the statutory provisions, should not have participated to answer the query merely on the basis of their guess to make the discussion more and more controversial, as that does not help enhancement of knowledge of anyone, rather confuse their minds about the provisions of law.
Naturally, it was not a question of procedures and practices that could have been solved by the varied personal experience of the members to enhance the knowledge and skill of membbers.
SO FAR AS THE ANSWER TO THE QUESTION IS CONCERNED, provisions about TDS certificate in Form No. 16 are very clear that IT HAS TO BE ISSUED ANNUALLY, not any time in between the AY or FY.
SO, THERE IS NO QUESTION OF ISSUE OF FORM 16 TO THE EMPLOYEE AFTER PAYMENT OF SALARY OF ONLY THREE MONTHS TO HIM.
At the most the employee can ask for the certificate of salary & perks drawn and deductions made out of his emoluments to help him submit his salary particulars of those months to his new employer. Form 16 would be issued only by the new employer by 31st May of the year after the close of the salary year/financial year.
From India, Delhi
I am ill-equipped to carry forward the discussion any further, other than to state that in Government offices, while an employee transferred from one office to another in the middle of the financial year, from 16 is issued by the DDO who disbursed the last salary (of the FY) taking into account the deductions effected by him as well the deductions effected by the previous DDO as reflected in the Last Pay Certificate.
I am also reproducing Rule 31 of the Income Tax Rules relevant to the issue:
31 . (1) The certificate of deduction of tax at source by any person in accordance with Chapter XVII-B or the certificate of payment of tax by the employer on behalf of the employee under sub-section (1A) of section 192 shall be in—
(a) Form No. 1687, if the deduction or payment of tax is under section 192; and
(b) Form No. 16A if the deduction is under any other provision of Chapter XVII-B.
(2) The certificate referred to in sub-rule (1) shall specify:—
(a) valid permanent account number (PAN) of the deductee;
(b) valid tax deduction and collection account number (TAN) of the deductor;
(c) (i) book identification number or numbers where deposit of tax deducted is without production of challan in case of an office of the Government;
(ii) challan identification number or numbers in case of payment through bank;
(d) (i) receipt number of the relevant quarterly statement of tax deducted at source which is furnished in accordance with the provisions of rule 31A;
(ii) receipt numbers of all the relevant quarterly statements in case the statement referred to in clause (i) is for tax deducted at source from income chargeable under the head "Salaries".
(3) The certificates in Forms specified in column (2) of the Table below shall be furnished to the employee or the payee, as the case may be, as per the periodicity specified in the corresponding entry in column (3) and by the time specified in the corresponding entry in column (4) of the said Table:—
TABLE
Sl. No. Form No. Periodicity Due date
(1) (2) (3) (4)
1. 16 Annual By 31st day of May of the financial year immediately following the financial year in which the income was paid and tax deducted.
2. 16A Quarterly Within fifteen days from the due date for furnishing the statement of tax deducted at source under rule 31A.
87a [ (3A) Notwithstanding anything contained in sub-rule (1) or sub-rule (2) or sub-rule (3), every person responsible for deduction of tax under section 194-IA shall furnish the certificate of deduction of tax at source in Form No.16B to the payee within fifteen days from the due date for furnishing the challan-cum-statement in Form No. 26QB under rule 31A after generating and downloading the same from the web portal specified by the Director General of Income-tax (System) or the person authorised by him. ]
(4) If an assessee is employed by more than one employer during the year, each of the employers shall issue Part A of the certificate in Form No. 16 pertaining to the period for which such assessee was employed with each of the employers and Part B may be issued by each of the employers or the last employer at the option of the assessee.
(5) The deductor may issue a duplicate certificate in Form No. 16 or Form No. 16A if the deductee has lost the original certificate so issued and makes a request for issuance of a duplicate certificate and such duplicate certificate is certified as duplicate by the deductor.
(6) (i) Where a certificate is to be furnished in Form No. 16, the deductor may, at his option, use digital signatures to authenticate such certificates.
(ii) In case of certificates issued under clause (i), the deductor shall ensure that—
(a) the provisions of sub-rule (2) are complied with;
(b) once the certificate is digitally signed, the contents of the certificates are not amenable to change; and
(c) the certificates have a control number and a log of such certificates is maintained by the deductor.
87b [ (6A) The Director General of Income-tax (Systems) shall specify the procedure, formats and standards for the purposes of generation and download of certificates and shall be responsible for the day-to-day administration in relation to the generation and download of certificates from the web portal specified by him or the person authorised by him. ]
(7) Where a certificate is to be furnished for tax deducted before the 1st day of April, 2010, it shall be furnished in the Form in accordance with the provisions of the rules as they stood immediately before their substitution by the Income-tax (Sixth Amendment) Rules, 2010.
Explanation.—For the purpose of this rule and rule 37D, challan identification number means the number comprising the Basic Statistical Returns (BSR) Code of the Bank branch where the tax has been deposited, the date on which the tax has been deposited and challan serial number given by the bank.]
As scuh, in my considered opinion, that the suggestions from Mr.P.S.Dhingra settles the issue.
From India, Kochi
I am also reproducing Rule 31 of the Income Tax Rules relevant to the issue:
31 . (1) The certificate of deduction of tax at source by any person in accordance with Chapter XVII-B or the certificate of payment of tax by the employer on behalf of the employee under sub-section (1A) of section 192 shall be in—
(a) Form No. 1687, if the deduction or payment of tax is under section 192; and
(b) Form No. 16A if the deduction is under any other provision of Chapter XVII-B.
(2) The certificate referred to in sub-rule (1) shall specify:—
(a) valid permanent account number (PAN) of the deductee;
(b) valid tax deduction and collection account number (TAN) of the deductor;
(c) (i) book identification number or numbers where deposit of tax deducted is without production of challan in case of an office of the Government;
(ii) challan identification number or numbers in case of payment through bank;
(d) (i) receipt number of the relevant quarterly statement of tax deducted at source which is furnished in accordance with the provisions of rule 31A;
(ii) receipt numbers of all the relevant quarterly statements in case the statement referred to in clause (i) is for tax deducted at source from income chargeable under the head "Salaries".
(3) The certificates in Forms specified in column (2) of the Table below shall be furnished to the employee or the payee, as the case may be, as per the periodicity specified in the corresponding entry in column (3) and by the time specified in the corresponding entry in column (4) of the said Table:—
TABLE
Sl. No. Form No. Periodicity Due date
(1) (2) (3) (4)
1. 16 Annual By 31st day of May of the financial year immediately following the financial year in which the income was paid and tax deducted.
2. 16A Quarterly Within fifteen days from the due date for furnishing the statement of tax deducted at source under rule 31A.
87a [ (3A) Notwithstanding anything contained in sub-rule (1) or sub-rule (2) or sub-rule (3), every person responsible for deduction of tax under section 194-IA shall furnish the certificate of deduction of tax at source in Form No.16B to the payee within fifteen days from the due date for furnishing the challan-cum-statement in Form No. 26QB under rule 31A after generating and downloading the same from the web portal specified by the Director General of Income-tax (System) or the person authorised by him. ]
(4) If an assessee is employed by more than one employer during the year, each of the employers shall issue Part A of the certificate in Form No. 16 pertaining to the period for which such assessee was employed with each of the employers and Part B may be issued by each of the employers or the last employer at the option of the assessee.
(5) The deductor may issue a duplicate certificate in Form No. 16 or Form No. 16A if the deductee has lost the original certificate so issued and makes a request for issuance of a duplicate certificate and such duplicate certificate is certified as duplicate by the deductor.
(6) (i) Where a certificate is to be furnished in Form No. 16, the deductor may, at his option, use digital signatures to authenticate such certificates.
(ii) In case of certificates issued under clause (i), the deductor shall ensure that—
(a) the provisions of sub-rule (2) are complied with;
(b) once the certificate is digitally signed, the contents of the certificates are not amenable to change; and
(c) the certificates have a control number and a log of such certificates is maintained by the deductor.
87b [ (6A) The Director General of Income-tax (Systems) shall specify the procedure, formats and standards for the purposes of generation and download of certificates and shall be responsible for the day-to-day administration in relation to the generation and download of certificates from the web portal specified by him or the person authorised by him. ]
(7) Where a certificate is to be furnished for tax deducted before the 1st day of April, 2010, it shall be furnished in the Form in accordance with the provisions of the rules as they stood immediately before their substitution by the Income-tax (Sixth Amendment) Rules, 2010.
Explanation.—For the purpose of this rule and rule 37D, challan identification number means the number comprising the Basic Statistical Returns (BSR) Code of the Bank branch where the tax has been deposited, the date on which the tax has been deposited and challan serial number given by the bank.]
As scuh, in my considered opinion, that the suggestions from Mr.P.S.Dhingra settles the issue.
From India, Kochi
Dear Shri Venu,
In your own post under the heading "TABLE", as against the very 1st serial the text appears,as follows:
"1. 16 ANNUAL By 31st day of May of the financial year immediately following the financial year in which the income was paid and tax deducted."
Would you please like to clarify what does that mean? Also please enlighten the members, if the practice of issuing Form 16 for part of year is still valid after the 1st day of April, 2010?
In my views there is a difference between practice and prescribed procedure. However, it would be a source of additional knowledge for the members, if you please list some Government offices that adopt such practice of issuing FORM 16 (not LPC) for part of the year.
From India, Delhi
In your own post under the heading "TABLE", as against the very 1st serial the text appears,as follows:
"1. 16 ANNUAL By 31st day of May of the financial year immediately following the financial year in which the income was paid and tax deducted."
Would you please like to clarify what does that mean? Also please enlighten the members, if the practice of issuing Form 16 for part of year is still valid after the 1st day of April, 2010?
In my views there is a difference between practice and prescribed procedure. However, it would be a source of additional knowledge for the members, if you please list some Government offices that adopt such practice of issuing FORM 16 (not LPC) for part of the year.
From India, Delhi
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