Form 16 Signing Processes

The need for convenient and efficient government procedures has prompted many organizations and governments worldwide to go paperless from paper-based mode. While attaining transparency and productivity into their functioning, the transition to paperless environment facilitates a speedy information process to the public and other agencies.

To make this transition secure and to promote it all levels, necessary legislations have been made and accepted globally. The legality associated with paperless mode encourages users to avail such services freely while acknowledging the authenticity of the same. The exchange of electronic documents is at the core of paperless environment, and to secure these electronic documents with individual identities we have digital signatures.

The acceptance of digital signatures in the government processes not only promotes their usage, but also allows others to simulate it into their processes. Therefore, to achieve its ‘Green’ target, the governments are supporting the use of digital signatures into some of its routine, yet critical procedures.

In the Indian context, Form 16 signing and submission process is one of them. Form 16s are issued by the organizations/individual employers to their employees at the end of every financial year. Traditionally, these forms have been signed and delivered manually; this whole process is time consuming, expensive, and cumbersome. And in today’s scenario, no organization can afford to spend manpower, time, and money on such tedious tasks. Therefore, to make the entire process convenient and simple, the Government of India has allowed online submission of these Form 16s with digital signature.

The Indian Information Technology Act 2000 recognizes the use of ‘Digital Signatures’ as equivalent to ‘Physical Signatures’. Therefore, a digitally signed Form 16 has the same legal validity as a physically signed one. As per Circular No. 2/2007 dated 21/5/2007 from the Income Tax Dept, “The Central Board of Direct Taxes have, therefore, in exercise of powers under section 119 of the Income-tax Act, 1961, decided for the proper administration of this Act to allow the deductors, at their option, in respect of the tax to be deducted at source from income chargeable under the head ‘Salaries’ to use their digital signatures to authenticate the certificates of deduction of tax at source in Form 16.”

This facility not only reduces time, and money involved in the process, but also makes it faster and convenient. This has encouraged many organizations to go paperless with their Form 16 issuance activities. To persuade organizations to go paperless in their routine procedures, reduce paper dependence and environmental damages have been the core of government’s ‘Green’ initiatives.

While going paperless for its own procedures, the government is leading by example to promote its ‘Green’ environment mantra. With this adoption, the traditional processes like Form 16 signing and submission are no longer tedious and cumbersome. Allowing employers to sign and send Form 16s to their employers with a mouse click, the government is shading off its traditional administration shackles. Therefore, a need for simplicity and convenience lies at the beneath of new popular mantra – Go paperless. Go Secure.