Form No 16 - No Salary

Hi,

I work in a Pvt Ltd Company and receive my salary in cash. I have asked my accountant to issue my Form No. 16, but he has denied my request. He claims that since my salary is paid in cash, I am not eligible for Form 16. I receive a monthly in-hand salary of Rs. 13,500. Can you please clarify this for me?

Posted Today

Hi Vikas,

Did you provide any other income details to your employer? If not, according to me, your take-home salary should be more than 13500/-. Can you please let me know your salary structure for more clarity?

Coming to your query, cash payment of salary does not matter in issuing Form 16. If your case pertains to AY 2016-17, your employer was obliged to issue the Form 16 by 30/5/2016. As your employer has not issued Form 16 yet, you may approach your range assessing officer of income tax along with the evidence of TDS deduction. The AO may impose a penalty of Rs. 100 per day under section 272A upon your employer for non-issuance of the TDS certificate within the prescribed due date.

Thanks & Regards,
Devesh Chauhan
Practicing in Accounts, Finance, Taxation, Labour Laws

Salary in hand has no relevance for the income tax point of view. You have to state the gross total salary for the year and the nature of deductions exempt from tax.

If your salary is Rs. 13,500 per month, you are below the taxable limit, and therefore no TDS would have been deducted from your salary. In view of the above, the company cannot issue a Form 16 to you at all. It would be illegal.