Tuesday, May 10, 2011

Who will issue Form 16 when Service with Two Employer in a Financial Year

 (Complication in Service under more than one employer in a Financial Year)

 It is common question that who will issue form 16, in case an employee works with two or more  employers in a single Financial Year.  Solution with example is given as under :-


  • First Service with A employer (01.04.2010 to 31.07.2010)
  • Second Service with B employer   (01.08.2010 to 15.02.2011)
  • Third Service with C employer (16.02.11 to 31.03.2011)
  • A deducts TDS Rs. 4000/-, B deducts TDS Rs. 6000/- and C deducts TDS Rs. 8500/-
  • Can an employee force his employer to issue form 16 at the time of transfer or not ?.
  • If an employee/assessee is employed under 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. Part B may be issued by each of the employers or the last employer at the option of the assessee.

    Finally, Form 16 Part A will be issued by all employers for the amount deducted and deposited by them and  Form 16 Part B will be issued at the option of the assessee either from Last employer or from each of the employer
  • Employee/Assessee can not force his employer to issue form 16 at the time of his transfer, reason is that  Due date of From 16 is 31st May from the end of Financial Year. 
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