07 March 2013
I was working with a MNC company for 3 and half years but I was not into TDS criteria. I joined new Public limited Company and its been only 2months. Now I require a Nil Form. 16 to show minimum 3yrs of IT return or salaried employee for Loan purpose, but my previous company is not ready to give. So what do I d? and from where else I can get Nil Form. 16?
you may refer to the extract of following income tax rule:
[Furnishing of particulars of income under the head "Salaries"27.
26A. (1) The assessee may furnish to the person responsible for making the payment referred to in sub-section (1) of section 192, the details of the income under the head "Salaries" due or received by him from the other employer or employers referred to in sub-section (2) of that section and of any tax deducted at source from such income in Form No. 12B.
(2) The person responsible for paying any income chargeable under the head "Salaries" shall furnish to the person to whom such payment is made, a statement giving correct and complete particulars of perquisites or profits in lieu of salary and the value thereof in,—
(a) relevant columns provided in Form No. 16, if the amount of salary paid or payable to the employee is not more than one lakh and fifty thousand rupees; or
28[(b) Form No. 12BA, if the amount of salary paid or payable to the employee is more than one lakh and fifty thousand rupees, which shall accompany the return of income of the employee.]
Explanation : "Salary" for the purposes of this rule shall have the same meaning as given in rule 3.]
Quoting the above rule, you may through a written application, ask your previous employer to give Nil Form 16.
As per the circular issue by income tax department
“It is, however, clarified that there is no obligation to issue the TDS certificate in case tax at source is not deductible/deducted by virtue of claims of exemptions and deductions. (Section 203)”
Hence, Employer is not obliged to issue form 16 in this case. Employee can only request employer to get the same.
In case employer is not eager to issue the form, you can request him to issue at least a certified copy of salary certificate.
You can explain this to your banker and provide your bank statement in which credit of salaries have been made. I hope that will work.
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