Guidelines for an employer to deduct TDS and issue Form 16

Following are the guidelines for an employer to deduct TDS and issue Form 16:

  • Make mandatory for all the employees to declare previous salary, investment proofs and TDS details, if any.
  • Employer has to consider the declaration before deducting TDS from salary.
  • Fill Annexure II for all employees who work or worked for any period of time during the current financial year.
  • Issue Form 16 to all the employees whose TDS was deducted.
  • It is the duty of an employee to provide valid PAN. If employee has worked with more than one employer in a financial year, employee should declare previous salary and TDS detail, if any, with the current employer.

Source: TRACES