Attention employers! Deadline for issuing Form 16 approaching

The deadline to issue Form 16, which shows the tax deducted at source (TDS) on salaried income for employees, is May 31st.

"The last date for the employers to share the form 16 with the employees is 31st May of the financial year immediately following the financial year in which income tax was paid and tax deducted," Archit Gupta, founder & CEO ClearTax.com, told ET. However, if no TDS has been deducted, the employer doesn’t need to issue the Form 16.

"The due dates were extended for submission of TDS Returns. But no extension has been announced for Form 16 yet. It must be kept in mind that an extension in the deadline for employers to provide Form 16 will reduce the time available for filing of returns for the salaried who rely on Form 16 to prepare their returns", says Gupta.

In case the employer doesn’t furnish Form 16 to the employee by the due date, (s)he is liable to pay a penalty of Rs 100 per day till he issues the form, under Section 272A (2) (g) of the Income Tax act.

However, the penalty will not exceed the amount of tax deductible.

In case someone finds it hard to collect the Form 16 from employers, either previous or present, (s)he can complain to the concerned assessing officer in writing, who will then take appropriate action or initiate penalty proceedings against the employer.

(Image source Turbo Tax)