You are within particular financial transactions this past September, November 14, 2024, is a crucial due date that is near. Various forms by this date pertinent to the tax deductions required to be provided such as forms 16B, 16C, 16D, and 16E.
Below is a guide to Forms 16B, 16C, 16D, and 16E what each form is for, who needs to file it, and why it’s significant to stay on top of this due date.
TDS Form 16B: Tax on Property Transactions Under Section 194-IA
When you buy property (excluding agricultural land) worth Rs. 50 lakh or more than Form 16B is required. If that’s the matter then the buyer (you) is required to deduct 1% TDS from the transaction amount before paying the seller.
In these property deals if you are a buyer then you must file the same form within the due date. Filing Form 16B would ensure that the seller gets the credit for the tax deducted which makes it simpler for them to file their taxes precisely.
TDS Form 16C: Tax on Rent Payments by Individuals/HUFs Under Section 194-IB
Form 16C applies when you file the monthly rent of Rs 50,000. You must deduct TDS on such rent payments u/s 194-IB of the tax legislature.
The form is required to be filed by those who are renting a place and paying Rs 50,000 per month. Nominally it applies to the residential tenants. Filing Form 16C assists the landlords in documenting income effectively, also it ensures the tenants remain tax compliant.
TDS Form 16D: Tax on Professional Services or Contracts Under Section 194M by Individuals or HUFs
Form 16D is for individuals or Hindu Undivided Families (HUFs) who have filed over Rs. 50 lakh for professional services, like work accomplished by contractors or freelancers. You would be required to deduct TDS on the amount if the same specifies your situation.
Individuals or HUFs submit large payments to professionals, towards the contractual or commission-based services, and are required to file the form. This form allows the documenting of important payments and ensures the receiver properly accounts for the same income in their taxes.
TDS Form 16E: Tax on Virtual Digital Assets Under Section 194S
Form 16E is for you if you purchase or transfer virtual assets in September. Section 194S mandates the TDS on the payments inquired for such transactions.
Read Also: Current Income Tax Return Filing Due Dates for FY 2023-24
Any person purchasing or transferring virtual digital assets in the said month must be required to file the form. From the emerging popularity of digital assets, Form 16E assists the assessment and tax department in monitoring and documenting such relatively updated forms of income.
Penalties or fees and more scrutiny from tax authorities might be imposed for missing the November 14 due date. If you would be required to have any of such financial transactions then do not wait till the last minute.
Collect any paperwork you require to ensure the information is true and take tax expert consultation if required. By staying updated within the due date and filing Forms 16B, 16C, 16D, or 16E, you shall keep things easier and prevent prospective penalties.
