Issuanace of form 16

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KETAN MEHTA (Querist)

27 February 2013 I have doubt about issuance form 16 as the said form will be issuing only when tax is deducted from employee's salary whereas if any employee whose salary is not taxable if needs a home loan then bank is insisting of Form 16 other wise same is liable to reject the loan. Employees are making compliant that co. is not giving form 16 , what can be solutions for the same.? Can any body advice.

Aditya Agarwal

Aditya Agarwal (Expert)

27 February 2013 Tats true wenava an individual approaches the bank for a loan, he is asked to furnish Form -16 irrespective of his Income.

In your case you can issue form 16.
I don't think there is any thing that restricts any body from issuing Form -16.
View of oders 'll b welcomed.

KETAN MEHTA

KETAN MEHTA (Querist)

27 February 2013 The form 16 is certificate of income tax department to certify of tax deducted by company on behalf of individual.

Aditya Agarwal

Aditya Agarwal (Expert)

27 February 2013 I know tat!
Bt several co's issue form 16 irrespective of their income as it serves as a proof of Income earned

KETAN MEHTA

KETAN MEHTA (Querist)

27 February 2013 might be IT department can hold companies for penalty for furnishing & using form wrongly

Aditya Agarwal

Aditya Agarwal (Expert)

27 February 2013 There's only penalty for non-issuance and not on issuance of form-16.
And there is no such misusing of Form -16 by merely issuing it.

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