This is the common demand regarding issuing of Form-16 by the Employer to Employee, even if Employer not deducts any Tax from drawn salary. What shall happen when Employee want's his Salary Certificate Form-16 for the same year. In such situation, Employer is liable to issue Form-16 to each and every who have already hold the PAN Card.
However, your employer must issue a salary Certificate Form 16 who already holds the PAN Card as per the Income Tax Instruction. Income Tax Certificate (Form-16) is applicable to such employee who has submitted his Income like as salary or other income (any amount) not deducted or not, during current Financial Year. If the Employee deducts any amount of Tax during Financial Year, Form-16 must be issued to Employee u/s. 203 of Income Tax Act.
As per the Reserve Bank of India has already circulated to all Nasalized Bank for issuing the form 16 to the Pension Holder.
This Salary Certificate is most important to PAN Holder who has to work in any sector, like as when any employee who’s Tax not Payable or not fall into the Income Tax Slab, but he gets the Form 16 as his/her proof of Income, which is the need for various purpose.
When any employee willing to get the Bank Loan from any Bank of Branch, the respective Bank asking the Salary Certificate Form 16 as he falls the Tax Slab or not. But the Bank’s requirement the Salary Certificate for giving the Bank Loan either he/she can not be able to get the Bank’s Loan.
Download the Automatic Form 16 for the Financial Year 2016-17 from the below given link:-
