Last updated: July 5th, 2024 10:13 AM

Form 16B - How to Download Form 16B?

In India, income tax laws require every person with income chargeable to tax to file an income tax return, reporting their income and tax liabilities. One of the main components of these laws is the Tax Deducted at Source (TDS), which facilitates a continuous revenue flow to the Government and reduces tax evasion. Form 16B, issued under the Income-tax Act, 1961, is a TDS certificate provided by the deductor to the deductee, specifically for property sales. This TDS document certifies the tax deducted on immovable property transactions. You can download Form 16B from TRACES by logging in with your PAN, navigating to Downloads, and providing details about the property transaction. This article helps you to learn about the Fomr 16B, and the difference between Form 16A and 16B. File your Form 16 effortlessly with IndiaFilings and ensure compliance with ease!!

What is Form 16B?

Form 16B means a Tax Deducted at Source (TDS) certificate issued by the buyer of a property to the seller in India. It is one of the parts of Form 16. It serves as official proof that the buyer has withheld a specific amount from the sale price and deposited it with the Income Tax Department. This deduction, mandated under Section 194-IA of the Income Tax Act, applies to immovable property sales (land or buildings, excluding agricultural land) exceeding Rs. 50 lakh. This form benefits both parties - the seller receives documentation of the deducted TDS, and the buyer has a record of fulfilling their tax obligations.

Uses of Form 16B

The following are some of the significant uses of this form:

• Proof of TDS deduction: It acts as official documentation for the seller, proving that the buyer has deducted the mandated TDS from the sale price.
• Record for the buyer: The buyer uses a TDS certificate to demonstrate they have fulfilled their tax obligations by depositing the deducted TDS with the Income Tax Department.
• Tax filing: The seller can use the information in Form 16B to claim credit for the deducted TDS while filing their income tax return.
• Verification of TDS: Both the seller and buyer can use this Form to verify the amount of TDS deducted and deposited against the sale of the property.

What are the Components of Form 16B?

The following are the components of Form 16B:

• Certificate No.
• Name and address of the Deductor
• Name and address of the Deductee 
• PAN of the Deductor
• PAN of the Deductee
• Financial Year of Deduction
• Unique Acknowledgement Number
• Amount Paid/Credited
• Date of payment/credit
• Amount of tax deducted and deposited in respect of the deducted
• Details of tax deposited to the credit of the central government for which credit is to be given to the deductee.

How to Download Form 16B from the TRACES Portal?

Form 16B Download: Use the following steps to learn how to download TDS certificate for sale of property from the TRACES Portal,

• Step 1: Register or Login - The buyer needs to be registered on the TRACES portal using their PAN details. If not already registered, they can do so using their PAN and details of tax deducted or challan or Form 26QB.
• Step 2: Navigate to Downloads - Once logged in, navigate to the "Downloads" section on the TRACES portal.
• Step 3: Select Form 16B (For Buyer) - Select "Form 16B (For Buyer)" from the download options.
• Step 4: Enter Details - Provide the following information:
  • Assessment Year (Year for which TDS was deducted)
  • Acknowledgement Number (Unique number generated when TDS was deducted)
  • PAN of Seller
• Step 5: Submit and Download - After entering the details, submit the request and confirm the details. You'll receive a download link or reference number to track the request and download the Form once it has been processed.

Format of Form 16B - Sample

Here’s the sample Form 16b for your reference and to understand this TDS certificate format:

Form 16B Password

Form 16B is typically password-protected to ensure its security. The Form 16B password is often set to the buyer's date of birth in DDMMYYYY format. For example, if the buyer's birthday is January 1st, 2000, the password would be 01012000.

Due Date of Form 16B

The deductor must issue Form 16B to the payee within 15 days from the due date of providing Form 26QB. As we mentioned in the process, you can access the TRACES portal, download the Form 16B with the required details, and provide or send it to the payee.

Difference Between Form 16A and 16B

You might be confused between form 16A and form 16B. In the table below, you can find the differences between form 16A and 16B to provide better clarity:

Aspects	Form 16A	Form 16B
Purpose	TDS certificate for income other than salary	TDS certificate for sale of property
Income Source	Interest on investments, rent exceeding Rs. 50,000 per month, commission on insurance sales, etc.	Sale of immovable property (building/land) excluding agricultural land
Issued By	Financial institutions, tenants paying high rent, insurance company (employer)	Property buyer
Issued To	Investor, property owner, insurance agent (employee)	Property seller
Deduction	Income exceeding specific limits or as per government regulations	Sale of immovable property
TAN Requirement for Deductor	Yes (Employers & Financial Institutions)	No (Tenants & Property Buyers)

What is the Relation between Form 26QB and 16B?

Form 26QB and 16B are related in the context of property transactions where TDS (Tax Deducted at Source) applies. Here's how the forms related to each other:

• Form 26QB (Return cum Challan): This is the form the buyer of the property uses to deposit the deducted TDS to the government electronically. It serves as a challan or acknowledgement of the tax payment.
• Form 16B (TDS Certificate): Once the buyer submits Form 26QB, they can then generate Form 16B. The buyer issues this certificate to the seller and details the TDS deducted on the property sale. The seller uses this form to claim the deducted TDS while filing their Income Tax Return (ITR).

Conclusion

In conclusion, Form 16B is an essential document in the Indian income tax system, particularly for property transactions. It serves as proof that the buyer has deducted the required Tax Deducted at Source (TDS) and deposited it with the Income Tax Department. Understanding how to download the form from the TRACES portal is crucial for both buyers and sellers to ensure compliance with tax regulations. By following the steps outlined in this article, taxpayers can efficiently manage their TDS obligations and streamline the tax filing process. Ensure timely submission of your Form 16 with IndiaFilings’ reliable expertise!!