Please clarify this point - " Whether Form 16 can be issued to employees who draw salaries but there is no TDS" Such Form 16 is a must while applying for housing loan from banks.
What is the alternative for this and whether such alternative would be acceptable by the banks.
26 February 2011
But sir, The employer in question, states that he will not be in a position to issue form16 to his employee since there is no TDS deducted from the employee (below the slab) . Can the employee demand for a form 16 even though there is no TDS for the whole year's salary and his salary is below the taxale limit.
26 February 2011
There is no obligation on the employer to issue Form 16 in case tax is not deducted by virtue of claims of exemptions and deductions. (Source: http://www.themoneyquest.com/2010/01/tds-salary-form-16-12b-tax-queries.html)
Nevertheless, you may request your Employer to favour you with Form 16. Issuance of Form 16 is no doubt not obligatory but at the same time is not against the Law