Form 16B – TDS Certificate for Sale of Property – Download from Traces
Form 16B: An Overview
This post will briefly overview the Form 16B – TDS Certificate for Sale of Property. We will then explore the following topics in more detail:
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.
Who is Eligible for Form 16B?
When you buy property in India for Rs. 50 lakh or more, you must set aside 1% of that amount for taxes. Then, you give this tax money to the government and provide a document called Form 16B to the person who sold you the property. This document proves that you’ve paid the tax.
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.
How to Download Form 16B from TRACES
To download the form online, you can follow these steps:
- Log in to the portal using your username and password.
- Click on ‘Downloads’ and select Form 16B.
- Fill in details such as the Seller’s PAN, assessment year, and acknowledgement number from form 26QB.
- Once these steps are completed, you can use the option to download the form.
Difference Between Form 16, Form 16A, and Form 16B
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Form 16 |
Form 16A |
Form 16B |
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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. |
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.
