Form 16B – TDS Certificate for Sale of Property – Download from Traces
Form 16B: An Overview
- What is Form 16B?
- Relationship of Form 26QB and Form 16B
- Who is Eligible for Form 16B?
- Components of Form 16B
- Form 16B – TDS Certificate for Sale of Property
- Due Date
- Depositing TDS Amount
- Penalty
- How to Generate and Download Form 16B from TRACES
- Difference Between Form 16, Form 16A, and Form 16B
- FAQ
What is Form 16B?
It is a paper you get when you buy a house. It shows that you kept some money aside for taxes. When you buy a home, you need to give a part of the money to the government as taxes. This money goes to the Income Tax Department.
By law, you must take 1% of the house price as tax and give it to the government. After you provide this tax money to the government, you need to give a paper called Form 16B to the person who sold you the house.
But if the house isn’t costly (less than ₹50 lakh) or used for farming, you don’t have to take out this tax money.
Relationship of Form 26QB and Form 16B
When you buy a property and deduct TDS (as per Section 194-IA), you need to pay it to the government. For this, you fill out Form 26QB – it’s like a challan-cum-return you submit online.
Now remember, once you fill this form and submit it, you can’t make changes easily. If you make a mistake, you will have to reach out directly to the Income Tax Department to fix it. So, fill it carefully.
After you successfully submit Form 26QB and the payment is done, you can then download Form 16B – which is basically the TDS certificate you give to the seller. It’s proof that you deducted and paid TDS on their behalf.
Some key points to keep in mind:
- Form 26QB must be filed within 30 days from the end of the month in which TDS was deducted.
- If you pay in instalments, you must file Form 26QB for each payment.
- If there are multiple buyers or sellers, separate Form 26QB needs to be filed for each buyer-seller combo. For example, 1 buyer and 3 sellers means 3 separate 26QB forms.
In short: Form 26QB is like your payment slip to the government, and Form 16B is your receipt for that payment.
Who is Eligible for Form 16B?
- The seller should be a resident Indian.
- The property sold must be worth ₹50 lakhs or more.
- Form 16B is given by the buyer to the seller after TDS is deducted
Components of Form 16B
- Buyer and Seller Details: Basic info like names, addresses, and PAN numbers of both parties.
- Assessment Year: This tells you the financial year for which the TDS is deducted.
- TDS Payment Acknowledgement Number (TAN): Once the buyer pays the TDS to the government, a number is generated and this is that number.
- Amount Paid: It shows the full sale value of the property.
- Verification: Sometimes there’s a tick box or space for the seller to confirm all the details are correct.
Form 16B– TDS Certificate for Sale of Property
It is a paper showing money taken from the property price for taxes. When you buy a property, you must keep some money for taxes. This paper proves you took that tax money and gave it to the government.
The paper says the buyer took 1% of the property price as tax and gave it to the government. After that, the buyer provides the form with 16B paper to the seller. It’s like proof that the tax was paid.
You can get this paper from a website called TRACES. You fill in some details, pay the tax, and then you can download the form online. Finally, you give this paper to the person you bought the property from.
Due Date
The deductor must furnish Form 16B to the payee within 15 days of the due date for filing the challan-cum statement in Form 26QB. The challan-cum statement is a tax return form that is filed by the deductor to declare the TDS that they have deducted.
Depositing TDS Amount
To make paying TDS easier, the Income Tax Department has given an option to pay it online. So, you don’t have to visit a bank, just log in through internet banking and make the payment. Once done, you’ll get a receipt (called a counterfoil) which will have the CIN, bank name, and other payment details. This acts as proof that you have paid.
Now, if you are doing it offline, the process is a bit longer. First, you need to fill out Form 26QB. After that, print the challan and take it to an authorised bank. You can pay the TDS there by cheque or demand draft.
Penalty
If the deductor delays filing Form 26QB or issuing Form 16B, they have to pay a late fee of ₹200 per day from the due date. But this penalty won’t be more than the total TDS amount deducted.
How to Generate and Download Form 16B from TRACES
To get Form 16B, you need to register on the TRACES website. While registering, just give your PAN details, challan info or Form 26QB details. Enter the verification code shown and submit. You’ll get an activation link on your email – click on that to activate.
Now follow these steps:
- If you have already registered, no need to do it again. Just use the same PAN and password to log in.
- After login, go to the “Download” tab and select “Form 16B (for buyer)”.
- Fill in details like Assessment Year, Seller’s PAN and the Form 26QB Acknowledgment Number.
- Then go to “Requested Downloads” under the same tab your Form 16B will be available there.
- You can download it and print it if needed.
To download Form 16B, just follow these steps:
- First, log in to the TRACES portal using your user ID and password.
- Go to the ‘Downloads’ section and select ‘Form 16B’.
- Enter a few details like:
- PAN number of the seller
- Assessment year
- Acknowledgement number of Form 26QB
- After filling in these, you’ll get the option to download Form 16B.
Format of Form 16B
The screenshot of Form No. 16B is shown below.
Difference Between Form 16, Form 16A, and Form 16B
|
Form 16 |
Form 16A |
Form 16B |
|
A certificate for employees that shows their salary income and TDS deductions. |
A certificate for employees that covers their income sources other than salary and TDS deductions. |
A certificate related to the income earned from selling a property and the corresponding TDS deductions. |
|
Applicable to salary income only. |
Income from interest, dividends, commissions, mutual funds, and other sources is eligible. |
Income from the sale of a building or land (other than agricultural property) is eligible. |
|
Employer-issued to an employee |
Issued by the firm or individual who deducts tax on earned income other than salary. |
Issued to a seller by a deductor (the buyer of land/property). |
|
Issued yearly |
Every three months or quarterly. |
Based on the total number of transactions |
|
Employees earning more than 2.5 lakh rupees are eligible. |
Those whose income (excluding pay) reaches a particular level are eligible. |
Eligible for each transaction in excess of Rs. 50 lakh. |
This finishes our post. Please leave any questions or comments in the box below, and we would be happy to respond.
FAQ
1. What falls within the scope of section 194-IA?
Ans: Section 194-IA pertains to regulations concerning property sales.
2. What is the TDS rate for property sale?
Ans: The TDS rate for property sales, deducted by the buyer on behalf of the seller, is 1%.
3. What is the Password for Opening Form 16B?
Ans: The form is provided as a PDF file, and the password required to open this file is the buyer’s date of birth in the format dd/mm/yyyy.
