What are the consequences faced by an Employer on refusal to issue the TDS Certificate / Form 16?

This post focuses on the option an employee or Taxpayer has when their employer refuses to provide the TDS Certificate / Salary Certificate/ Form 16. 

What Must an Employee do in Case their Employer refuses to issue the TDS Certificate or Form 16?

In case you are facing such a situation, then you must be aware that being an employee, you have the right to get your TDS certificate/ Form 16 from your employer. In such a case, you can complain to the Assessing Officer in charge in writing and they will take the necessary action against the employer. When you file your returns, the details of this certificate has to be provided, as, without this, you will not get any credit for TDS. If your employer has not issued the TDS certificate, he can be penalized u/s 272A(2)g for Rs.100 for every day of default. There is no other remedy available other than informing the Assessing Office about the issue.

Also, in case your previous employer hasn’t issued the Form16/TDS Certificate when you file your returns, you can claim for the TDS. However, the department might demand your employer to furnish the TDS certificate.

So, is it possible that an Employer can decline the issue of Form 16 when no deduction of TDS has occurred on the salary of the employee?

Many times, employees get confused regarding the Form 16 by assuming that it is a salary certificate and in its absence, income tax returns cannot be filed.

However, Form 16 is just a prescribed form to issue the certificate pertaining to tax deduction at source by the employee. An employer can always decline the issue of Form 16 when there isn’t any tax deducted at source, u/s 203 of Income Tax Act, and rule 31 of the IT Rule.