The Hindu Business Line : Can I ask for a zero TDS Form-16?

IS AN employer obliged to issue Form-16 to an employee from whose salary tax has not been deducted on account of exemptions, permissible deductions and rebate under Sections 88 and 88C?

In other words, is a zero TDS certificate contemplated? If not, how will the employee file his return? - TAP Krishnan, Coimbatore

Strictly speaking, there is no need inasmuch as Section 203 mandates issuance of certificate of tax deducted at source. Evidently, when no tax has been deducted, there is no scope for issuing a certificate. But with computerisation being the norm, TDS certificates are churned out as a matter of routine.

While absence of TDS certificate is no handicap while filing the return for those with no tax liability, its existence does bolster the confidence levels of both the employee and the taxman.

Govt's offer of sale

DOES THE offer of sale made by the Government make the grade under Section 54ED? - Makhan Jhaver, e-mail

The section makes it clear that the public issue must be made by a public company registered in India.

In the event the offer of sale by the Government apparently does not make the grade unless the CBDT comes out with a circular in public interest.

In NSE, not BSE

LONG-TERM capital gains arising out of shares acquired during March 1, 2003 to February 29, 2004, is exempt from tax provided, among other things, the share happens to be on the BSE-500 list.

What if the share is traded on the NSE but does not figure in BSE-500? - Makhan Jhaver, e-mail

There is no harm if the share figures both in the BSE-500 list and is also traded on the NSE.

But if it is merely listed in the NSE and does not figure in theBSE-500, it would not make the grade unless it makes it via the second route, namely, public issue made during the same period.

Appeal without paying up

WHAT exactly are the implications of the recent Supreme Court verdict upholding, subject to certain qualifications, the Securitisation Act? - Malathi Rangaswamy, Tiruchi

The Supreme Court has upheld the new law permitting financial institutions to go ahead and dispose of the mortgage asset without the leave of the court but has struck down the provision requiring payment of 75 per cent of the outstanding amount as a precondition for filing an appeal against the sale notice served by the financial institution.

While so doing, the apex court seems to have done a fine balancing act protecting the interest of the lenders without sacrificing the interest of the borrowers. The lenders feel that the judgment would take them back to square one with borrowers dragging their feet in a protracted litigation. The borrowers however are delighted. They can appeal without having to pay up.

(ASK! Send in your queries on accounting, auditing, corporate law and taxation to ask@thehindu.co.in)

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