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Former Member

FORM 16 OF EMPLOYEE LEFT MID YEAR.

Hi Fellow Consultants,

My question is Regarding Form 16 to be provided to an employee.

If and employee Left after 4 months of working say (April to July) and his monthly salary is Rs. 1 Lakh per month. so his total earning is Rs. 4 Lakhs.

Now the form 16 which is getting generated is based on projection Rs. 1lakh *12 = Rs. 12 Lakh.

So How can we generate form 16 for that employee based on his total earning of Rs. 4 Lakh not the projected 12 Lakh as he no longer work for the company.?

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1 Answer

  • Jul 26, 2017 at 03:58 PM

    Hi Ankush,

    If you run the terminated employee's FINAL payroll AFTER entering the TERMINATION action for him in IT0000, then the Form 16 generated for him will only contain the amount that you paid him during the time he was in the company.

    Best Regards,

    Aman

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    • Hi Ankush,

      Termination will always stop tax and income projection in the payroll and since Form 16 only picks the values from the payroll cluster, that too will show only the amount that has been paid.

      Best Regards,

      Aman