Employer refuse to issue Form 16

Confusion arises among employees regarding Form 16 is on following grounds :

• That they think Form 16 is a salary certificate.
• That income tax Return can not be filed in absence of Form 16

Both the aforesaid “general impression about Form 16″ are wrong. Form 16 is the prescribed form for issue of certificate of deduction of tax at source from an employee. employer can decline to issue Form 16 in case there is no deduction of tax at source.It is clear from a bare reading of section 203 of the I T Act and the relevant rule 31 of IT Rule .

Liability to give a certificate of tax deduction is given in Section 203 of the I T Act .For employer, specific provision is given in sub-section 2 of section 203 of the I T Act. The said subsection is given as under:

203. (1)Every person deducting tax in accordance with the foregoing provisions of this Chapter]shall, within such period as may be prescribed from the time of credit or payment of the sum, or, as the case may be, from the time of issue of a cheque or warrant for payment of any dividend to a shareholder, furnish to the person to whose account such credit is given or to whom such payment is made or the cheque or warrant is issued, a certificate to the effect that tax has been deducted, and specifying the amount so deducted, the rate at which the tax has been deducted and such other particulars as may be prescribed.

(2) Every person, being an employer, referred to in sub-section (1A) of section 192 shall, within such period, as may be prescribed, furnish to the person in respect of whose income such payment of tax has been made, a certificate to the effect that tax has been paid to the Central Government, and specify the amount so paid, the rate at which the tax has been paid and such other particulars as may be prescribed.

It is clear from the aforesaid provision that an employer shall furnish the certificate only if any tax has been paid to central govt. on behalf of the employee. Rule 31 of IT Rules states that employer has to issue TDS certificate in Form 16 . The said Rule states as under

Thank you Mr. Vishal for your response. I am not very much aware of the IT rules so what do you suggest for me in the current situation? Can I submit my IT returns without Form 16? Can I avail Home loan without Form 16?

regards,

Subhankar

Yes, you can submit your return without Form 16. Regarding the home loan, you can produce your acknowledgement of the ITR to the banker, which will suffice.

Thank you so much.

But I could not gather one thing, that if out of personal grudge or otherwise, the D.D.O refuses to issue Form 16 when actually income tax was deducted at source, in such case what will happen? Is there anything the assessee could do against the D.D.O by communicating the matter to the income tax authority or elsewhere? Is there anything the assessee could do?

YES MR INDRAJIT WHY NOT . U CAN FILE A COMPLAINT AGAINST THE COMPANY FOR NOT PROVIDING HE FORM 16 TO ITO DEPT.

Hi
I am Rachna this side, i was working in an IT company but as a consultant through a third party payroll job. I worked there for about 5 months. Everything was fine but yes i was having problems every month by calling the consultants for issuing salary and salary slips on time.
Then due to some personal and health problems, i wanted to resign. It was 13th august, 2012 ( Monday); I was not well and was on leave; i had a discussion with my manager at IT company that i am gong to resign and will not be able to serve any notice period and he was fine with my decision and infact he discssued with other seniors at company that she cannot continue, so with mutual consent, i resigned from Home and send the resignation letter keeping all seniors, HR, and consultants in one mail. As the project was over, so Seniors at IT company sent their approval, that they dont have any problems with issuing residual salary and any documents at their end and i had a good rappo there, so they respected my decision and helped me out through the scenario.
I also contacted the consultant company at the very same day to have a discussion about the same the very day. Even they said that if the client company have no problems, then there is no problems and they will also release my salary and experience letter and all asap. Its been 5 months, no help and documents have been provided saying later after 3 months that i didnt served the notice period of the consultant company, i.e 15 days. I was told that i went for 10 days of august to office till friday and on 13th ( Monday), i resigned, so i have to pay 5 days salary to them, then they will release my documents.
I get to know that IT company has paid my 13 days salary to the consultants. And consultant company refused to give me that or any other document. I am not at all going to give them any money to get the exp letter and all. But i am thinking  that now i have to pay ITR this year, so i will be in need of Form16. So, what should i do.?

Hello sir,

             My previous employer was Decline To Issue Form 16 When there is no deduction of TDS on Salary,but i have submitted declaration form with investment doc which i have invested last year,so i was not lying under tax deduction,but i need form 16.how to get from 16 what i do so i get my form 16.please guide me.