Can Employers Withhold FORM-16 Over Unpaid Settlements? Seeking Clarification

Hi All,

Can an employer stop the issuance of FORM-16 for an employee who has not repaid their full and final amount (in case of recovery) to the employer?

Please clarify.

Regards,
Ashish

Dear all,

Legally, an employer cannot withhold Form 16, and you can file a complaint with the income tax commissioner.

Regards,
JS Malik

Dear Outlook,

As Malikjs mentioned, the employer cannot hold Form 16 of the employee. It is the responsibility of the employer to provide Form 16 to the employee when requested. Non-compliance with this requirement will result in legal issues.

Thank you.

Dear Regional Income Tax Commissioner/Officer,

I am writing to inform you that I have been unable to file my tax return this year. The reason for this is that my employer has refused to provide me with Form-16, which is necessary for the filing process. I have made several attempts to obtain this document from them, but have been unsuccessful thus far.

I kindly request your assistance in resolving this matter promptly, as the tax filing deadline is approaching. I have also copied my employer on this letter to bring their attention to the situation.

Thank you for your attention to this matter. I trust that once the necessary documentation is provided, things will fall into place automatically.

Sincerely

Why is everyone against the employer? It is fine that legally, the employer cannot hold Form-16, but the employee is also responsible for full and final settlement before leaving.

Thanks,
Jony_M

Dear Sir,

The employer receives adequate time (even if it is short notice) to prepare and present final settlement dues details to the employee. However, the staff concerned are simply not bothered to do their homework and place the employee in an awkward position.

Thanks,
C V Brid

Dear All,

The employer is bound by law to provide Form 16/Form 12BA to employees before 30th April of any year, irrespective of any dispute [s.192(2c)]. The failure to do so attracts a penalty u/s 272A(2)(i) of the Income Tax Act at Rs. 100/- for each day of delay.

This does not absolve the employee of the responsibility of filing a return based on the monthly payslips. They can simply record the facts with a Registered letter to the employer with a copy to the regional IT commissioner (receipt acknowledged) and observe the proceedings thereafter.