How to download Form 16B?

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:

  1. Visit the TRACES website
  2. Log in to your account using your User ID, Password, and PAN.
  3. Once you have logged in, click on the “Downloads” tab and select “Form 16B”.
  4. 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.
  5. Click on “Proceed” and verify the details of the transaction.
  6. 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).
  7. 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.

Read more about Form 16B : Certificate of TDS on Sale of Property - Learn by Quicko

If any queries, you can ask them here!

I am purchasing a new property under construction from a reputed builder. Payments are being made in instalments. I have also made deducted TDS during the payment, filed Form 26QB and obtained Form 16B which I have sent to the builder. The TDS payment is now shown in my Form 26AS. My query is whether I as a deductor (buyer) also have to reflect this in my annual Income Tax return or is this only to be done by the deductee (builder)?

Hey @rjnadkarni,

When making the installment payments, you have deducted a percentage of purchase price and deposited the same with Income tax department. Thus, although TDS on transfer of immovable property reflects on 26AS of both buyer and seller, TDS can be claimed by seller (i.e: builder) alone.

So it is not required in your case to disclose the same in your Income tax returns.

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Hi @rjnadkarni

Yes, it is correctly mentioned by @radhesh23k that, as a buyer you do not need to disclose the TDS payment made by you in your Income Tax return, the deductee (builder) has to claim TDS in their ITR.

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