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Form no.16

JAYANTA KUMAR BANDYOPADHYAY (professional service) (293 Points)

22 February 2013

Taxable income is below the threshold limit. Hence no TDS. Company refuses to issue Form No.16, as there is no tax deduction. Bank refuses to accept salary slips for grant of housing loan purpose. My question is what recourse is available to an employee to force employer issue Form No.16. Act/Rule/Case Ref please.

Thanks in advance.

Regards,

Jayanta

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4 Replies

Santosh Mishra (AM) (1135 Points)
Replied 03 March 2013

There is no provision in law on this , you can not really force employer to issue form 16 until tax has been deducted. Request your employer to issue at least a certified salary certificate on letter head.

Explain your situation to your bank and if required provide them your bank statement in which your salaries have been credited.

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Vivek Kumar Scholar - The TRP (Tax Return Preparer) (37 Points)
Replied 03 March 2013

Mr. Bandopadhyay, Mr. Santosh is right.

By the way, if an employee has other source of income, he may furnish a self declaration of other income to his employer and his employer can not force him to disclose his source of income, thus in the way, the total income of the employee may reach to taxable range. Thus he may get form 16!

(I will say it a trick, not a method.)

Santosh Mishra (AM) (1135 Points)
Replied 03 March 2013

Hi Vivek

Not a bad idea. But if the person declares other income now, employer would deduct taxes from March 2013 salary and Form 16 would only be issued by 31^st May 2013 (after TDS Return for quarter-4 by 15^th May 2013).

It is very unfortunate that people need to tag on such techniques to get form 16 from employer and just to convenience bankers.

Vivek Kumar Scholar - The TRP (Tax Return Preparer) (37 Points)
Replied 03 March 2013

@ Santosh Mishra,

I already have told it a trick, not a method, not a good method.

As far as issue of form 16 is concerned , one has to wait for it till last of May. no other way. For this AY, it has to be downloaded from tds website.