5 Replies to “Can income tax be shown payable in FORM 16 or should it always be tax refundable or Nil?”


  1. It is mandatory for employer to deduct full tax due from employee. Concerned section no where give relief to deduct lower or less tax. Accordingly no tax must be payable as per Form 16. However some time due to situation beyond the control of employer some tax may be payable or refundable in Form 16. Primarily employer may require to clearify the reason for amount less deduction.


  2. Showing TAx refundable or NIL in Form No. 16 is not necessary. Tax payyable can be shown in Form No. 16 When amount deducted as TDS during any financial year falls below assessment Tax, in such case Tax payable can be shown in Form No. 16.
    Such amount of short deduction may be paid by 30th April without interest & with interest up to the actual date of payement in completed month formula. Refer Income TAx Act 1961 & chapter Salary for details. Or visit http://www.incometaxindia.gov.in



  3. As far as I know one can show tax payable in form 16

    But you may deposit it within time limits.

    Moreover if one is issuing form 16 then he must be having some sales turnover and also headed by some Chartered Accountant (even partial)
    So its ideal to ask him.





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