• Regarding Form 16

Dear sir,
I have a loan amount  of current outstanding 25L with current bank/financier. I got an offer where transfering the same loan to new bank cuts down the outstanding to 19 Lacs which I would prefer to transfer.
Problem is the new bank requires Form 16 of consecutive 2 yrs. As my TDS was zero my employer hasn't issued any Form 16 of last year. Previous year Form 16 is available with me. 
Is it possible to generate authentic Form 16 by any means now.
Please let me know any other alternate solution for this.
Asked 1 year ago in Income Tax from Hyderabad, Telangana

If the TDS is Nil, there is no need to issue Form 16 but was TDS really NIL or the employer failed to deduct tax at source, though he was obligated to do so? As your present loan outstanding amount is Rs 25 L and your requirement is also Rs 19 L, in all probability you must be having taxable salary, on which tax ought to have been deducted, unless there was gap in the employment due to your personal reasons.

If there was indeed gap in your employment and there was no need to deduct tax at source on the salary income earned by you during this period, in all probability you may not get the loan as requested for by you, unless your current salary is substantial.

The payslips received by you should be sufficient evidence for the receipt of salary, if there was no need to deduct tax at source from the salary income.

B Vijaya Kumar
CA, Hyderabad
865 Answers
61 Consultations

5.0 on 5.0

Either you can ask from employer to issue a declaration tht TDS was not applicable that's why Form 16 was not issued. Or you ask to issue blank Form 16 frm your employer

Vidya Jain
CA, Kolkata
639 Answers
15 Consultations

4.8 on 5.0

There are two options:

1. Even if your TDS is nil many employers issue form 16. You can check with your employer.

2. Alternatively, you can ask your bank to take salary slip instead of form 16.

Please feel free to call/ revert in case you need more clarity.

Thanks and regards

Abhishek Dugar

CA CS B.Com

Abhishek Dugar
CA, Mumbai
3576 Answers
162 Consultations

5.0 on 5.0

If your net take home salary becomes less than taxable income due to EMIs, still tax needs to be deducted at source from salary income, unless, your income becomes less than taxable income after giving effect to the interest on housing loan and deductions u/s 80C towards repayment of principal amount.

It will be advisable to see your pay slips and Form 16 for previous years for providing meaningful and relevant suggestions.

B Vijaya Kumar
CA, Hyderabad
865 Answers
61 Consultations

5.0 on 5.0

Hi,

Sorry, but a Form 16 can be issued only by your employer. Since you have worked with the same employer, you can ask for a declaration from your employer stating your gross salary and the net taxable income and that it was below the taxable limit.

Alternatively, you can file your tax return for last year and offer that as a proof of income to the bank.

Regards,

Keerthiga Padmanabhan

M.Com., CA, LL.B

Keerthiga Padmanabhan
CA, Greater Mumbai
784 Answers
23 Consultations

5.0 on 5.0

You can approach your employer and request him for a Salary certificate or working of salary. Along with the same attach your all months payslips.

Then submit the same to banker stating that as per calculation you are below taxable limit and hence TDS not deducted.

Shyam Sunder Modani
CA, Hyderabad
1408 Answers
107 Consultations

5.0 on 5.0

Hi

Form 16 can be issue even if Non deduction of TDS thus request your employer to provide you form 16 in which he can mention your salary details and which showing no tds required / if you had filled your itr then banker can accept the same with your Joining letter, appraisal letter(if any) , last 6 months bank statement , last 3 months salary slips

Lalit Bansal
CA, Delhi
566 Answers
37 Consultations

5.0 on 5.0

Hello,

Even if the TDS was Zero your employer can still issue you a Form 16. You can ask them to issue you a genuine form 16 instead of faking one. In case they do not consider your request ask your banker if an income tax return will suffice instead of a form 16 or may be a salary slip.

Trust this clarifies your query.

Feel free to call / get back in case of further clarifications.

Thanking You.

Regards,

Rohit R Sharma

BCOM, FCA, LLB, CERT. FAFP

Rohit R Sharma
CA, Mumbai
2104 Answers
91 Consultations

5.0 on 5.0

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