Absolutely necessary. Otherwise Income Tax Dept may initiate according steps as per the relevant provisions of the IT Act. Submit a written application to your DDO for issuing fORM nO 16 and don’t forget to submit your return EVEN IF YOUR TAX REFUND IS NIL etc. EVERY SALARIED PERSON SHOULD SUBMIT IT RETURN IF HE/SHE POSSESSES A PAN irrespective of the fact whether his/her income is taxable or not. THIS IS FOR BEING IN SAFER SIDE. Best of Luck.
Form 16 consiats of two parts – Part A and Part B. Part A is TDS Certificate. So if there is no TDS of an employee, he will not have the Part A. Part B is the Salary, Savings and Income Tax Details. One must have this part of Form 16.