Struggling to Get Form 16 for Home Loan: How to Handle Employer's Refusal?

Dear all, I am working with a private limited company based in Mumbai since January 2010, and my annual CTC for the financial year 2010-11 is around Rs. 3,25,000. I have not yet filed my Income Tax return or paid any taxes as I provide investment proofs, based on which I receive exemptions from TDS. Now, I require Form 16 for the financial year 2010-11 as I am applying for a Bank Home Loan. My organization is unwilling to issue me Form 16 and has only provided a Salary Certificate. According to the explanation given by the concerned authority in my Accounts department, they cannot issue Form 16 for employees for whom TDS was not deducted in the financial year 2010-11.

On the contrary, my brother (who also works for a private limited company in Pune) has received his Form 16 for the financial year 2010-11, despite his annual CTC being only Rs. 1,56,000 (i.e., TDS is not applicable).

I am confused about what steps to take and how to proceed, as I need to have the home loan sanctioned within the next month.

I have also requested my Accounts department to provide any documentary evidence or government notification stating that Form 16 cannot be issued to employees who have not paid TDS, so that I can present it to the bank as proof and justification for not submitting Form 16. However, I have not received the requested documentation from the Accounts department, and the concerned Accounts personnel suggested that I ask the bank representative to contact him.

I am looking forward to your guidance.

Kind regards, SS

Issuance of Form 16 is mandatory irrespective of TDS; it is a statutory compliance requirement on the part of employers. Send a written request to them for issuing Form 16.

By the way, why is the bank asking for Form 16 for a house loan? Last three months' salary slips and bank statements are sufficient for a home loan.

Regards,
Pon

Importance of Form 16 for Home Loan Approval

All the banks and home loan lending institutions like SBI, ICICI, LIC, HDFC, GIC, etc., require Form 16 for sanctioning a home loan. Some banks ask for the last 1 year's Form 16, some ask for 2 years, and some for 3 years. As I am taking a home loan based on my salary, I am required to submit Form 16 as proof of salary breakup and also as per the bank's rules. Without submitting Form 16, my loan will not be sanctioned by the bank as it is an important document without which banks do not process loan applications. It is mandatory if the loan is applied to a nationalized bank like SBI.

Regards,
SS

Alternative Documents for Loan Application

If Form 16 is not available, banks ask for the last 2 years' IT return copy along with the last 3 months' salary slip and 6 months' salary account bank statement.

- SS

An employer has to issue Form 16, which is mandatory whether the employee falls under tax liability or not. As per the IT Act, each employer has to provide Form 16 to the employees. Therefore, you can ask for your Form 16 from your accounts department to proceed with the bank.

Regards,
Ashok.

Solution for Lost Form 16 and Tax Deduction

If an employee has lost Form 16 and the organization is not providing the details or the form again, is there any solution to get the tax deducted at source for the current and previous years? What solutions does the employee have if they are not filing the E-return in practice?

Regards,
Abhishek Sharma
Bareilly.