Preparation and issuance of employees’ Form 16s is the cumbersome assignment toward the end of every money related year. Customarily, these structures have been signed and delivered physically; this whole process is time devouring, expensive, and cumbersome. Moreover, there are increased possibilities of getting these structures lost, or misplaced, resulting in re-issuance. What is more, for re-issuance one needs to again undergo time-devouring processes. Considering the present scenario, no association can stand to waste time, manpower, and paper on such processes. Furthermore, as association are going online with the greater part of their processes, manual marking of Form 16s despite everything looks like resource wastage. Therefore, the concept of digitally marking Form 16s is picking up momentum, permitting associations to save time, money, and manpower, for significant and basic operations. This helps in time management, however for getting enhanced Return on Investment (ROI).
Anything, which is legal, takes less time to become mainstream and stable in any type of social or business environment. In case of digitally marking of Form 16s, 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 legitimacy as a truly signed one. Besides, 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-charge Act, 1961, decided for the proper organization of this Act to permit the deductors, at their choice, in respect of the expense to be deducted at source from income chargeable under the head ‘Salaries’ to use their digital signatures to authenticate the certificates of deduction of duty at source in Form 16.
This has encouraged different digital signature arrangements providers, like E-Lock, to meet the basic requirement of Form 16 marking with their quick and easy-to-use items. Enabling users to digitally sign a large number of Form 16s inside a few minutes, and permitting them to go paperless, these arrangements enhance the security and reliability of the entire process chu ky so fpt. Adding more to the marking process, E-Lock arrangements permit users to e-mail these digitally signed Form 16s to singular recipients in one go, eliminating the delivery costs. Therefore, users/associations get double benefits in one single arrangement, which means higher ROI.