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Hi,

Please solve this case. The Finance department issued Form-16 to an ex-employee. There was a spelling mistake in his name. Now, the employee is asking for a fresh Form-16 with the correct name. The finance department doesn't have any problem issuing a fresh form, but it requires the former form to be returned. When I asked the employee to return it, he mentioned that it had been destroyed as it was of no use. Now, the finance department states that they will not issue a new form unless the old one is returned. The employee threatens to go to the Income Tax department and file a case against us. The finance team suggests the employee declare the loss on a ₹100 stamp, and then a new form will be issued. Even this suggestion is not acceptable to the employee.

I would like to understand the legal implications involved in this situation and how it can be resolved.

Regards,
Aashi

From India, Delhi
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As per the current law of income tax, there is no requirement to submit Form 16 with the ITR 2. In any case, the finance department can issue a new certificate by marking it as "Duplicate." Additionally, an affidavit on a Rs. 100 stamp paper by the employee for a misspelled name or misplaced certificate can also serve as a solution. In my opinion, issuing a duplicate certificate does not pose any hardship for the financial department.
From India, Delhi
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Duplicate can not be issued with correction. If necessary, let your finance dept bear the cost of affidavit charges as the fault lies with them.
From India, Lucknow
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It is better to have an affidavit, whoever bears the cost. Rule changes, people's minds get changed, office staff also get transferred/replaced. So for the safer side or for record purposes, an affidavit should be kept.

As far as mistakes in the Form 16 are concerned, on one hand, the office (finance) staff is at fault, but the employee is also equally at fault for receiving it. Furthermore, destroying the form also amounts to a significant mistake.

From India, Hyderabad
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Form 16 is a personal document that can be misused, for example, someone may give it as proof of paying tax to obtain a loan from a bank, etc.

However, the employer can issue a fresh Form 16 once the employee points out the wrong spelling. That is, those corrections qualify him/her for the fresh issue.

A written statement of loss of the old Form 16 is enough because if anyone misuses it, the employee will be the loser and not the TDS authority (employer).


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