The deadline for employers to provide Form 16 to their employees for the year 2016-17 has been extended to June 15, 2017. Previously, As per Rule 31 of the Income Tax Act, the due date for Form 16 (Certificate for TDS deduction on salary) was 31st May 2017. Form 16 is an important document for each employee. It Contains details of TDS deducted by the employer from your salary each month, detailed breakdown of salary and deductions availed by you.
It is mandatory for the employer to provide Form 16 to the employee whether it is a current or former employee. If the employer does not provide the Form 16 within the due date, the company is required to pay a fine of 100 ? per day of default until you issue the form. However, the penalty will not exceed the amount of the tax deductible.
From FY 2016-17 onwards, the due date for issuing Form 16 would be 15th June.