The due date for employers to furnish Form 16 to their employees for FY2016-17 has been extended to 15th June,2017. Earlier as per income tax rules, the due date for furnishing Form 16 by employers was 31st May,2017. Form 16 is an important document for every salaried person. It contains the details of TDS deducted by the employer from your salary every month, detailed break up of your salary and deductions availed by you. If you have worked in more than one employer, then you will get Form 16 form all such employers.
It is compulsory for the employer to furnish Form 16 to the employee, whether it is a current or previous employee. If the employer fails to furnish the Form 16 within the due date, the company is liable to pay a penalty of ₹100 per day of default till they issue the form. However, the penalty will not exceed the amount of tax deductible.
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 income tax returns for the salaried who rely on Form 16 to prepare their returns.