if the employee gives declaration to employer that he will pay his tax himself and consequently the employer does not deduct the tax, whether still employer is required to issue form 16 stating nil tax deducted.
actually the case is :
an individual was working earlier with his relative on the income sharing basis.
and now he has applied for a job and he has shown to the new employer that earlier he was in employment with the company of relative and has taken a salary certificate on the letter head of the former company. but now the new employer is demanding form 16 from him.
what i thought of suggesting him is that to tell to new employer that he has given declaration to previous employer not to deduct his tax and he will pay the tax himself.
CAclubindia
