Form 16B

Salaried individuals are subject to taxation based on applicable slabs under Income Tax Act, 1961, & are obliged to file tax returns by specific date every year. One of certificates that companies provide that details what is needed for salaried individuals to file their income tax returns is Form 16.

What Is Form 16B?

Form 16B meaning is usually TDS certificate that is given to seller by buyer, or deductor. Verifying entire amount of tax withheld at source when buying real estate is beneficial to taxpayers. deductor deposits specified tax amount with income tax. To put it plainly, Form 16B of income tax is certificate that lists all TDS that was withheld in event that property was sold. Notably, Section 194-I of IT governs TDS on immovable property. However, agricultural & immovable properties whose sale value is less than ₹ 50 lakh are not eligible for TDS. Buyers are required under Section 194 of IT to deduct TDS at rate of 1% at time of payment. Following tax amount's deposit with IT Department, buyer must give concerned seller Form 16B of income tax.

Who Is Eligible for Form 16B?

Anybody who pays resident transferor for immovable property (except from agricultural land) for ₹ 50 lakhs or more is required to deduct TDS of 1%. Once tax has been subtracted, individual must deposit amount with Income Tax Department & provide seller with TDS certificate (Form 16B).

Components Of Form 16B

 Seller's PAN is one of form 16B's most notable components.

• Assessment year; 
• Payment acknowledgment number; 
• Payment breakdown; 
• IT deduction

Remedies pursuant to section 89

These particulars are useful for ITR & tax filing. People can consult these details & swiftly complete processes.
 

How To Generate & Download Form 16B?

Like discussed, at time of purchasing property, buyer deducts TDS at 10%. amount so withheld is deposited using Form 26QB at authorized financial institution. 

Producing Form 26QB:

By following these instructions, one can simply generate this form on TIN-NSDL website:
Step1: Go to TIN NSDL webpage.
Step 2: Open "TDS on sale of property" page.
Step 3: Select "TDS on property" option by clicking on web form.
Choose "TDS on sale of property" in step four.
Step 5: Enter information such as property's data, buyer & seller's PANs, their contact information, amount paid, tax deposited, etc.
Step 6: Check information & send form in.

Alternatively, people can print form & mail it to financial institution. 
 

Amount of TDS deposit

Tax amount is deposited as demand draft or check once challan has been printed. taxpayer is forwarded to bank's official payment website if they choose to pay at bank option. 
Following successful payment of outstanding balance, challan counterfoil including payment information, CIN, bank name, etc., is shown. Interestingly, this counterfoil functions as payment evidence. 
After five days, those who have registered as taxpayers visit TRACES portal to download Form 16B.
 

How to Download Form 16B?

 following procedures must be completed in order to download form:

• Enter portal by entering your password & login.
• Select "Downloads" & then select Form 16B.
• Give information such as seller's PAN, assessment year, & form 26QB acknowledgment number.

You can use Form 16B of income tax download option after completing these procedures.
 

Due Date For Form 16B

In India, it is essential to issue Form 16B TDS; failure to do so will result in penalty. For same, penalty of Rs. 100 per day is charged. Please take note that deductor must provide this form to relevant payee no later than 15 days after deadline for providing challan-cum statement in Form 26QB.

How To Deposit TDS Payment?

Income tax department offers ability to submit amount online in order to simplify process of deposing tax deduction at source. TDS amount can be deposited online by taxpayers. variety of users can also access online banking services. counterfoil including payer's CIN, bank information, & payment details is presented when transaction is completed online & serves as evidence of payer's payment activity.
Offline TDS submission procedure can be little challenging. Once Form 26QB is obtained, challan can be produced & tax deduction at source payment can be made by check or draft at any bank that has been approved.
 

Form 16 Vs Form 16 Vs Form 16B

Following table format lists most notable differences:

Conclusion

Form 16B for TDS on sale of property is essential document for buyer to furnish as proof of TDS deducted on property sale. This Form 16B for TDS on sale of property ensures compliance with tax regulations & aids in seller's tax filing process. When engaging in Property Transaction, it is crucial to account for Tax Deducted at Source to ensure compliance with tax regulations. This deduction impacts your Income Tax Return Filing, especially when calculating Capital Gains Tax resulting from transaction.