Form 16b of Income Tax
Form 16b of Income Tax
The Income Tax Act details clauses for tax collection and tax deduction at source to curb tax evasion and to ensure a continuous flow of revenue to the government. The deductor must deposit TDS with the government by furnishing the details of the deductee, the nature of the transaction, etc.
In addition to depositing the TDS, the deductor must also provide the deductee with the TDS certificate form 16B as proof. Read on to learn more about Form 16B of income tax, its contents, how to download it, etc.
Form 16B Meaning
Form 16B is a TDS certificate provided by the deductor (buyer) to the deductee (seller) in case of the sale of an immovable property. It contains all the details and information related to the sale of the property.
Under the provisions of section 194-IA, the buyer of an immovable property must deduct TDS and deposit it on behalf of the seller. The buyer must also provide Form 16B to the seller so he can avail of tax deduction while filing the return.
The form certifies the amount deposited by the buyer on behalf of the seller with the government. It must be noted that Form 16B is not required when a movable property is sold.
Form 16B of Income Tax Contents
Form 16B contains the following details:
Name and address of the deductor and deductee
Assessment year
PAN number of deductor and deductee
Amount paid
Payment acknowledgement number
Verification
Key Points Related to Form 16B of Income Tax
There is a sale/transfer of an immovable property
Immovable property excludes agricultural land
The buyer is required to pay the seller a consideration (amount) for such transfer.
The consideration value or sale value must be more than ₹50 lakhs.
TDS @ 1% must be deducted by the buyer at the time of payment or credit (section 194-IA)
TDS @ 20% will be deducted if the seller does not provide PAN
Form 16B must be issued by the deductor within 15 days from the due date to furnish challan in form 26QB.
Form 26QB is an electronic document or challan for TDS under 194-IA and is needed to obtain Form 16B. Once the challan is printed and the tax amount is deposited, the challan counterfoil with all the details, such as CIN, bank details, payment details, etc., is displayed. The counterfoil is a proof of TDS payment by the deductor.
After this, the taxpayers can perform their Form 16B download from the TRACES portal after five days.
Form 16B Traces: Downloading Form 16B for TDS on Sale of Property
Go to the TRACES website and register yourself if you are a new user.
After registering, you can log in to the portal with your user ID and password.
Under the downloads tab, select Form 16B.
Provide details such as form 26QB number, PAN of the seller, assessment year, etc.
Confirm your details that are automatically filled in TRACES. Click Submit.
After you click submit, a request number will be generated.
You can download the Form 16B from the requested download section on the portal.
Enter the request number and click “View Request.”
If the status shows “Available”, you can download the form immediately. If the status reflects as “Submitted”, you must wait for 24-48 hours.
Download the form using the download button on the page.
The downloaded form will be in a zip format. To access it, you can enter your date of birth as the password.
Difference Between Form 16, Form 16A and Form 16B
| Particulars | Form 16 | Form 16A | Form 16B |
|---|---|---|---|
| What is it? | It is a certificate given to the salaried employees by the employer | It is a TDS certificate and a part of Form 16, which shows tax deducted from all income sources | Form 16 part B format is a TDS certificate used when an immovable property is bought or sold. |
| What does it contain? | It contains the employee’s salary details, tax deducted, etc. | It includes information such as the employer’s name, PAN, TAN, employee name, PAN and TAN, TDS, etc. | It reflects the amount of tax deducted by the buyer on behalf of the seller. |
| Who is it for? | For salaried employees | For non-salaried employees | For property sellers |
Conclusion
Form 16B is a crucial component when it comes to buying and selling properties. It contains all the details of the tax deducted on behalf of the seller by the buyer when dealing with an immovable property.
The tax deposited by the buyer is reflected in Form 16, which can be used by the seller as proof to the government. It is an essential document that an assessee can furnish while filing the return and reducing the tax liability.
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Disclaimer / TnC
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