Yes. If you must share Form 16 (Part A) with your employees, it is mandatory to include the employees with zero tax, while generating the Form 24Q of the last quarter. This must be done irrespective of the fact that an employee is eligible or not for TDS deductions. Even when an employee does not come under the TDS bracket, he/she may require Form 16 for various purposes.
To include employees while generating the Form 24Q, perform the following actions:
- Navigate to Payroll > Admin > Form24Q. Form 24Q page opens.
- Next to Challans button, there is a Settings icon. Click Settings icon. Form24Q Settings page opens.
- On the Form24Q Settings page, under preferences, perform the following actions:
- Clear the option Exclude Employees Without PAN and Zero IT in eTds.
- Select the option Include Zero IT in eTds.