{"id":508142,"date":"2024-08-25T21:26:27","date_gmt":"2024-08-25T15:56:27","guid":{"rendered":"https:\/\/www.spinny.com\/blog\/?p=508142"},"modified":"2026-10-28T14:39:21","modified_gmt":"2026-10-28T09:09:21","slug":"why-is-form-16-required-while-buying-a-car","status":"publish","type":"post","link":"https:\/\/www.spinny.com\/blog\/why-is-form-16-required-while-buying-a-car\/","title":{"rendered":"Why is Form 16 required while buying a car: Requirements, How to apply"},"content":{"rendered":"\n<p>You don\u2019t need Form 16 to buy or register a car. It is not a vehicle or RTO document. You will usually need it only if you take a car loan, because banks use it as proof of your salary income. Form 16 is a certificate of Tax Deducted at Source (TDS) on salary. Your employer issues it under the Income Tax Act. It shows your salary breakup, allowances, deductions and the TDS deducted in a financial year, and proves that the TDS was deposited with the Income Tax Department. From tax year 2026-27, under the new Income-tax Act, 2025, Form 16 is replaced by Form 130, which serves the same purpose.\u00a0<\/p>\n\n\n\n<p>Every employer you work for is liable to issue a Form 16 to you. However, if your income is below the tax-exemption limit, no TDS should be deducted, and thus the Form 16 should not be issued. The Form 16 plays an integral part in your annual financial cycle, whether you are employed or a pensioner.&nbsp;&nbsp;&nbsp;&nbsp;<\/p>\n\n\n\n<div class=\"wp-block-rank-math-toc-block\" id=\"rank-math-toc\"><h2>Table of Contents<\/h2><nav><ul><li><a href=\"#why-is-form-16-required-for-buying-a-car\">Is Form 16 Needed to Buy a Car?<\/a><\/li><li><a href=\"#how-to-get-form-16\">How to get Form 16?<\/a><\/li><li><a href=\"#when-is-form-16-issued\">When is Form 16 issued?<\/a><\/li><li><a href=\"#parts-of-form-16\">Parts of Form 16<\/a><\/li><li><a href=\"#what-documents-should-be-submitted-along-with-the-form-16-to-the-rto\">What documents should be submitted along with the Form 16 to the RTO?<\/a><\/li><li><a href=\"#documents-a-bank-needs-for-a-car-loan\">Documents a Bank Needs for a Car Loan<\/a><\/li><li><a href=\"#summary\">Summary<\/a><\/li><li><a href=\"#faq\">FAQs about Form 16<\/a><\/li><\/ul><\/nav><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"why-is-form-16-required-for-buying-a-car\">Is Form 16 Needed to Buy a Car?<\/h2>\n\n\n\n<p>No. To buy and register a car, the RTO needs vehicle documents such as Form 20, the sale certificate, insurance and your address proof, not Form 16.<\/p>\n\n\n\n<p>Form 16 matters only if you are buying the car on a loan. Banks and lenders use it to:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Verify your salary income<\/li>\n\n\n\n<li>Check that your employer deducts and deposits your tax<\/li>\n\n\n\n<li>Assess how big a loan you can repay<\/li>\n<\/ul>\n\n\n\n<p>If you pay for the car in full, you won\u2019t need Form 16 at all.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"how-to-get-form-16\">How to get Form 16?<\/h2>\n\n\n\n<p>Your employer must issue Form 16 if it has deducted tax from your salary. It covers TDS on salary only. If no tax was deducted because your income was below the taxable limit, your employer may not issue one.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"how-to-get-form-16-from-your-employer\">How to get Form 16 from your employer?<\/h3>\n\n\n\n<p>Employers generate Form 16 on the TRACES portal (TDS Reconciliation Analysis and Correction Enabling System), run by the Income Tax Department. They download it from TRACES after their quarterly TDS return is processed, then sign it digitally or manually and give it to you, usually by email as a PDF.<\/p>\n\n\n\n<p>As an employee, you cannot download your Form 16 from TRACES. Only the employer can. If you need a copy, ask your employer\u2019s HR or payroll team.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"how-to-download-form-16-online\">How to Download Form 16 online?<\/h3>\n\n\n\n<p>You can\u2019t download Form 16 yourself, but you can check the TDS deducted from your salary on the Income Tax e-filing portal:<\/p>\n\n\n\n<p><strong>Form 26AS<\/strong><\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>Log in to incometax.gov.in with your PAN and password.<\/li>\n\n\n\n<li>Go to e-File > Income Tax Returns > View Form 26AS.<\/li>\n\n\n\n<li>You will be taken to TRACES, where you can view or download it.<\/li>\n<\/ol>\n\n\n\n<p><strong>Annual Information Statement (AIS)<\/strong><\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>Log in to incometax.gov.in.<\/li>\n\n\n\n<li>Click \u201cAnnual Information Statement (AIS)\u201d on the dashboard (or e-File > Income Tax Returns > View AIS) and click Proceed.<\/li>\n\n\n\n<li>Open the AIS tile to see your TDS and other financial information.<\/li>\n<\/ol>\n\n\n\n<p>Some lenders accept Form 26AS or your ITR if you don\u2019t have Form 16<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"when-is-form-16-issued\">When is Form 16 issued?<\/h2>\n\n\n\n<p>Employers must issue Form 16 by 15 June following the end of the financial year. The financial year runs from 1 April to 31 March. For example:<\/p>\n\n\n\n<p><strong>Tax year 2026-27<\/strong> (1 April 2026 \u2013 31 March 2027): Form 130, which replaces Form 16, due by 15 June 2027.<\/p>\n\n\n\n<p><strong>FY 2025-26<\/strong> (1 April 2025 \u2013 31 March 2026): Form 16 due by 15 June 2026.<\/p>\n\n\n\n<p><strong>Also read:<\/strong> <a href=\"https:\/\/www.spinny.com\/blog\/how-to-apply-for-smart-card-driving-license\/\">How to apply for Smart Card Driving License<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"parts-of-form-16\">Parts of Form 16<\/h2>\n\n\n\n<p>Form 16 has two parts, Part A and Part B. (Form 16A and Form 16B are separate certificates for other kinds of TDS, not parts of Form 16.)<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"part-a\">Part A<\/h3>\n\n\n\n<p>Part A has the basic details of you and your employer, and the tax deposited.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Name and address of the employee<\/li>\n\n\n\n<li>PAN of the employer and the employee<\/li>\n\n\n\n<li>TAN of the employer<\/li>\n\n\n\n<li>Period of employment<\/li>\n\n\n\n<li>Quarter-wise summary of TDS deducted and deposited<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"part-b\">Part B<\/h3>\n\n\n\n<p>Part B shows how your taxable salary and tax were worked out.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Gross salary<\/li>\n\n\n\n<li>Exempt allowances under Section 10 (such as HRA)<\/li>\n\n\n\n<li>Standard deduction and professional tax under Section 16<\/li>\n\n\n\n<li>Deductions under Chapter VI-A, such as Section 80C (PF, PPF, life insurance, ELSS), 80CCD (NPS), 80D (health insurance), 80E (education loan interest) and 80G (donations), if you chose the old tax regime<\/li>\n\n\n\n<li>Total taxable income and tax payable<\/li>\n\n\n\n<li>Rebate under Section 87A, if eligible<\/li>\n\n\n\n<li>Surcharge, if applicable, and 4% Health and Education Cess<\/li>\n<\/ul>\n\n\n\n<p><em>From tax year 2026-27, Form 130 has three parts: Part A (details), Part B (TDS summary) and Part C (salary and tax computation).<\/em><\/p>\n\n\n\n<p><strong>Also read:<\/strong> <a href=\"https:\/\/www.spinny.com\/blog\/how-to-add-your-vehicle-registration-certificate-rc-in-digilocker-and-mparivahan\/\">How to Add Your Vehicle Registration Certificate (RC) in DigiLocker and mParivahan<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"what-documents-should-be-submitted-along-with-the-form-16-to-the-rto\">What documents should be submitted along with the Form 16 to the RTO?<\/h2>\n\n\n\n<p>Form 16 is not submitted to the RTO. To register a new car, these are the usual documents:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Form 20 (application for registration)<\/li>\n\n\n\n<li>Form 21 (sale certificate from the dealer)<\/li>\n\n\n\n<li>Form 22 (roadworthiness certificate from the manufacturer)<\/li>\n\n\n\n<li>Form 34 (hypothecation, if the car is on a loan)<\/li>\n\n\n\n<li>Dealer\u2019s invoice and insurance certificate<\/li>\n\n\n\n<li>Your address proof and ID proof<\/li>\n\n\n\n<li>PAN card, or Form 60 if you don\u2019t have a PAN<\/li>\n<\/ul>\n\n\n\n<p>Most dealers handle registration for you.<\/p>\n\n\n\n<p><strong>Also read:<\/strong> <a href=\"https:\/\/www.spinny.com\/blog\/how-to-check-rc-status\/\">Ultimate Guide: How To Check RC Status Online<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"documents-a-bank-needs-for-a-car-loan\">Documents a Bank Needs for a Car Loan<\/h2>\n\n\n\n<p>Banks ask for slightly different documents, but this is what a typical car loan application needs. These are based on SBI\u2019s car loan requirements; check with your lender:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th>Applicant<\/th><th>Income proof<\/th><th>Other documents<\/th><\/tr><\/thead><tbody><tr><td>Salaried<\/td><td>Latest salary slip, plus Form 16 or ITR for the last 2 years<\/td><td>Last 6 months\u2019 bank statement, passport-size photos<\/td><\/tr><tr><td>Self-employed \/ business<\/td><td>ITR for the last 2 years, audited balance sheet and P&amp;L for 2 years<\/td><td>Last 6 months\u2019 bank statement, business registration proof (e.g. shop &amp; establishment certificate or partnership deed), photos<\/td><\/tr><tr><td>All applicants<\/td><td>\u2013<\/td><td>ID proof (PAN, Aadhaar, passport, voter ID or driving licence), address proof, and a PAN card copy if the bank doesn\u2019t have it on record<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>Some banks waive Form 16 or ITR for customers who have held a salary account with them for a while.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"summary\">Summary<\/h2>\n\n\n\n<p>Form 16 is a TDS certificate on salary, not a vehicle document. You don\u2019t need it to buy or register a car, and it is never submitted to the RTO. Where it matters is a car loan: banks use Form 16, or your ITR, as proof of income. Your employer issues it by 15 June each year through TRACES. From tax year 2026-27 it is replaced by Form 130. If you don\u2019t have it, you can check your TDS in Form 26AS or AIS on the income tax portal.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"faq\">FAQs about Form 16<\/h2>\n\n\n<div class=\"saswp-faq-block-section\"><ol style=\"list-style-type:none\"><li style=\"list-style-type: none\"><h5 class=\"saswp-faq-question-title \">Is Form 16 mandatory to buy a car?<\/h5><p class=\"saswp-faq-answer-text\">No. You don\u2019t need Form 16 to buy or register a car. You may need it only if you take a car loan, as proof of salary income.<\/p><li style=\"list-style-type: none\"><h5 class=\"saswp-faq-question-title \">Which documents does a bank need for a car loan?<\/h5><p class=\"saswp-faq-answer-text\">Usually ID and address proof, a PAN card, passport-size photos, your last 6 months\u2019 bank statement and income proof. For salaried people, that means a salary slip plus Form 16 or ITR for 2 years. Self-employed applicants also need business financials and registration proof.<\/p><li style=\"list-style-type: none\"><h5 class=\"saswp-faq-question-title \">Can I get a car loan without Form 16?<\/h5><p class=\"saswp-faq-answer-text\">Often, yes. Many banks accept ITR returns, salary slips and bank statements instead. Some waive Form 16 for existing salary-account customers. Check your lender\u2019s list.<\/p><li style=\"list-style-type: none\"><h5 class=\"saswp-faq-question-title \">What to do if the employer has deducted tax but Form 16 has not been issued?<\/h5><p class=\"saswp-faq-answer-text\">First check Form 26AS or AIS on incometax.gov.in to see whether the tax was deposited against your PAN. If it shows, you can file your return using those details and ask your employer for Form 16. If the tax was deducted but not deposited, raise it with your employer, and if needed, with the Income Tax Department. An employee cannot be asked to pay again tax that was already deducted from their salary.<\/p><li style=\"list-style-type: none\"><h5 class=\"saswp-faq-question-title \">How can I get a duplicate copy of Form 16?<\/h5><p class=\"saswp-faq-answer-text\">Ask your employer, or your former employer if you have left the job. They can download it again from TRACES and must mark it as a duplicate. Pensioners should contact the bank that pays their pension.<\/p><li style=\"list-style-type: none\"><h5 class=\"saswp-faq-question-title \">What is the due date for issuing Form 16?<\/h5><p class=\"saswp-faq-answer-text\">By 15 June after the end of the financial year. For example, 15 June 2026 for FY 2025-26. From tax year 2026-27, Form 130 replaces Form 16, with the same 15 June deadline.<\/p><li style=\"list-style-type: none\"><h5 class=\"saswp-faq-question-title \">Does not getting Form 16 mean I don\u2019t have to pay tax?<\/h5><p class=\"saswp-faq-answer-text\">No. Filing your income tax return and paying any tax due is still your responsibility. An employer that fails to issue Form 16 on time can be penalised. You can raise a complaint with the Income Tax Department.<\/p><\/ul><\/div>","protected":false},"excerpt":{"rendered":"<p>You don\u2019t need Form 16 to buy or register a car. It is not a vehicle or RTO document. You [&hellip;]<\/p>\n","protected":false},"author":38,"featured_media":508144,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"cos_headline_score":0,"cos_seo_score":0,"cos_headline_text":"Why is Form 16 required while buying a car: Requirements, How to apply","cos_headline_has_been_analyzed":false,"cos_last_analyzed_headline":[],"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"set","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"_ayudawp_aiss_exclude":false,"_ayudawp_aiss_summary":"","_ayudawp_aiss_summary_provider":"","_ayudawp_aiss_summary_hash":"","footnotes":""},"categories":[5087],"tags":[4426],"class_list":["post-508142","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-documents","tag-form-16"],"acf":[],"jetpack_featured_media_url":"https:\/\/spn-sta.spinny.com\/blog\/20230207112301\/Form-16-TDS-Featured-Image-Final--jpg.webp","_links":{"self":[{"href":"https:\/\/www.spinny.com\/blog\/wp-json\/wp\/v2\/posts\/508142","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.spinny.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.spinny.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.spinny.com\/blog\/wp-json\/wp\/v2\/users\/38"}],"replies":[{"embeddable":true,"href":"https:\/\/www.spinny.com\/blog\/wp-json\/wp\/v2\/comments?post=508142"}],"version-history":[{"count":8,"href":"https:\/\/www.spinny.com\/blog\/wp-json\/wp\/v2\/posts\/508142\/revisions"}],"predecessor-version":[{"id":545950,"href":"https:\/\/www.spinny.com\/blog\/wp-json\/wp\/v2\/posts\/508142\/revisions\/545950"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.spinny.com\/blog\/wp-json\/wp\/v2\/media\/508144"}],"wp:attachment":[{"href":"https:\/\/www.spinny.com\/blog\/wp-json\/wp\/v2\/media?parent=508142"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.spinny.com\/blog\/wp-json\/wp\/v2\/categories?post=508142"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.spinny.com\/blog\/wp-json\/wp\/v2\/tags?post=508142"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}