Is It Mandatory to Provide Form 16 to Non-IT Return Filers for Loan Applications?

Dear all,

I recently faced a situation with an employee from my company regarding Form 16, also known as a salary certificate, which is supposed to be provided by the accounts department. The employee requested Form 16 to submit to the bank for obtaining approval for a personal loan. During this process, there was a serious argument with the individual for not providing the Form 16. The employee is a non-IT return filer. Is it compulsory to provide Form 16 to certain individuals?

Regards,
Naveen

Naveen: Form 16's are compulsory. You are in the right, and you can escalate non-issuance of Form 16's to your payroll/Accounting/Finance team/s.

No, Form 16 is a certificate of having deducted the TDS from an employee's salary. If there is no deduction of TDS, the issue of Form 16 does not arise. However, if the employee requires, a Salary Certificate or a Pay slip could be issued.