You are not very clear. If your talking about the form 16 to be issued under the IT act, then there is nothing called as an indemnity bond for that.
Issue of form 16 is the responsibility of every employer for every person who is under the tax bracket whom the employer has engaged.
It would be unfair on the part of any employer to ask for an indemnity bond for form 16.
If you are trying to make a recovery from one of the ex- employees or those who are on the verge of leaving, then it has to be handled in a different manner. But issue of form 16 against an indemnity for such purposes will not be valid.
Dayanand L Guddin
2nd September 2011 From Singapore, Singapore