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It is a common presumption that Form-16 is only needed for an ITR filing, however, it is essential for many other purposes as well. Do you know that this document can prove valuable for you in several ways? This is correct. Form-16 assists you with a loan and getting a visa as well. So let us understand the 4 ways in which Form 16 can be beneficial to you that even a CA won't discuss with you.
It Is Time To File Tax
We are currently in the period for filing income tax returns and taxpayers are required to file their ITR by July 31. There are two options – the old tax regime and the new tax regime. You can choose based on your preference. However, irrespective of the choice that you make, it is mandatory to fill Form-16. I am certain that a lot of you have the query, what’s the purpose of Form 16 other than for ITR filing.
Finding out the purpose of Form 16
And here is the answer: You can use Form 16 to file tax and also use it for occasions like applying for a loan. Let us see the four reasons why you can use Form 16 aside from filing the ITR.
Apply for Visa
Form 16 is going to be particularly helpful if you need a visa to travel overseas. Form 16 can also be regarded as an essential document for visa application. In this case, it is no longer news that a debtor must prove financial sufficiency. To do this, one needs to apply using form 16 as visa form. Form-16 is sufficient proof of how stable your income is.
Help in Taking a Loan
It is an accepted fact that people change jobs. When this happens, it is imperative to submit the salary slip from the previous organization and accompanying tax documents. Even if you do not have pay-slips at that time, Form-16 will get you covered. Form 16 includes every detail about your annual salary and TDS. In other words, it proves tax and income claims without a problem.
For Credit Card
Individuals apply for credit cards at different stages in their lives and If you are seeking a credit card, Form-16 will serve as a dependable income verification document. Companies that issue credit cards are also interested in knowing if the customer has one of the options of a regular or fixed income. Hence, in the absence of a salary slip or bank statement, Form-16 can serve as income proof for a credit card.
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