Form 16B is a TDS (Tax Deducted at Source) certificate for the sale of immovable property. Basically, this certificate certifies that the buyer has deducted TDS on the sale of the property and deposited it with the government. The seller can use Form 16B to claim credit for the TDS deducted and deposited by the buyer while filing their income tax return.
Just like Form 16 is a TDS certificate for TDS deducted from salary, Form 16A is a TDS certificate for TDS deducted from all other payments like commission, interest, etc. Form 16B is a TDS certificate for TDS deducted on the sale of the property.
Let’s say you’re a property buyer and someone sold a property to you for ₹60 lakhs. Now you’re required to deduct TDS at the rate of 1% under section 194IA, on the sale consideration, which is ₹60,000 (1% of Rs. 60 lakhs), and deposit it with the ITD.
Now, a seller can claim credit for this TDS while filing their income tax return. For this, you need to have a TDS certificate (Form 16B) in their name.
Here, you’re required to download and issue Form 16B to the seller which certifies that TDS has been deducted and deposited with the Income Tax Department.
Here are the steps to download Form 16B from the TRACES:
- Visit the TRACES website
- Log in to your account using your User ID, Password, and PAN.
- Once you have logged in, click on the “Downloads” tab and select “Form 16B”.
- Enter the details of the property transaction for which you need Form 16B, such as the form type, assessment year, acknowledgment number of the TDS return filed by the buyer, and the PAN of the seller.
- Click on “Proceed” and verify the details of the transaction.
- Click on “Submit Request” and a confirmation screen will be displayed. (Form 16B will be available for download after 3-4 hours of submitting the request).
- Click on “Download Requested Files” and save Form 16B to your device.
Is there a penalty for the late issuance of Form 16B?
Yes, there is a penalty for the late issuance of Form 16B. As per the Income Tax Act, if the buyer fails to issue Form 16B to the seller within 15 days from the due date of filing the TDS return, the buyer will be liable to pay a penalty of ₹100 per day for the period of delay.
Note: The due date for filing the TDS return for Form 26QB (which is used for TDS on the sale of the property) is within 30 days from the end of the month in which the deduction was made.
Can Form 16B be revised?
Yes, the buyer can request a correction in this form only before downloading the form. Correction requests will be allowed only once.
If any queries, you can ask them here!