Is Form No. 16 Required for Employees Not in the Tax Bracket? Let's Discuss!

Mandatory Issuance of Form No. 16

Is it mandatory to issue Form No. 16 to all employees? What about the employees who don't come under the tax slab? Has Form No. 16 to be issued to them as well?

Yes, it is mandatory to issue Form No. 16 to all employees in whose case TDS has been deducted. For others, it is not mandatory, but if they demand it, you have to provide it.

Issuing Form 16 is necessary for all employees, even if it is not mandatory from an Income Tax Act point of view. Most employees would come back to you asking for Form 16 for the past 2-3 years, especially when they apply for a loan at the bank. It would also be a goodwill gesture to your employees as they will be assured the company is following all statutory compliances under the Income Tax.

Hope this helps.

Regards

Our management is not providing Form 16 for the 2012-13 financial year even though it has been requested many times. This is why I am unable to file my Income Tax Return accurately, as the income shown in my account does not reflect all my earnings, including other sources of income.

Steps to Obtain Form 16

What can I do to proceed and obtain the Form 16 necessary to file my Income Tax Return?