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Home > Business > Business Headline > Report


Tax dept to issue Form 16

Freny Patel & K Ram Kumar in Mumbai | July 12, 2004 09:05 IST

Salaried employees will no longer have to chase their employers for Form 16 in June before filing their income-tax returns.

Instead of the employer, the income-tax department will now issue a tax-deducted at source (TDS) certificate to the salaried class.

The Finance Bill seeks to amend Section 200 of the Income Tax Act and states that any employer deducting TDS will have to file quarterly statements to the income-tax authorities.

The taxman will then prepare and deliver a statement to every person whose income tax has been deducted.

An advocate said the employer would not be in the picture and the onus would be on employees to ensure that they had the necessary TDS certificates to file their returns.

"With the limited machinery of the income-tax authorities, it is questionable whether the department will be able to deliver the statements, causing a lot of chaos and harassment to individual employees," he added.

An income-tax lawyer said that the move was aimed at making sure employers were depositing the money after deducting it from employees.

"There have been cases where companies do not deposit the money with the income-tax authorities even after deducting TDS from employees' salaries. The move will block this practice," he pointed out.

The fine print in the Finance Bill states the prescribed income-tax authority shall, within the prescribed time after the end of each financial year, prepare and deliver to every person from whose income the tax has been deducted or in respect of whose income the tax has been paid, a statement in the prescribed form specifying the amount of tax deducted or paid and such other particulars as may be prescribed.

The government also wishes to do away with TDS certificates in order to enable tax returns to be filed through the Internet. So, this move has to be seen as a first step towards facilitating the process of computerisation.

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Number of User Comments: 20




Sub: Suggestion to FM

Dear Mr. FM, This is a stupid move. Please try to consider the following. 1. Ask the Employers to submit every employee joining or leaving ...


Posted by Sharat





Sub: Issue of form 16 by IT Dept

Yet again a ridiculous provision. Now form 16 is coming to us with out affort and hitherto we take take leaves to get form 16 ...


Posted by A.Srinivasa Rao





Sub: IT dept and Form 16

It is heartening to see the spontaneous reaction of majority of Rediff readers against the stupid move of the FM which will breed red tapism ...


Posted by Sundar





Sub: TDS - Form 16

The Congress Government has always been in favour of Correption, now creating a new corridore for the Tax man to extract from the employees class, ...


Posted by shivalingam Vanaraj





Sub: TDS - Form 16

The Congress Government has always been in favour of Correption, now creating a new corridore for the Tax man to extract from the employees class, ...


Posted by shivalingam Vanaraj




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