Every individual who comes under the income chargeable to tax is needed to furnish the ITR to declare their income along with the tax liabilities. But the income tax laws in India issue the collection or deduction of the tax at source (TDS/TCS) itself. The same gives the assurity about the regular flow of the revenue to the government and on the other side, it keeps examining the tax theft.
The payer is liable to deduct the tax (TDS/TCS) and furnish it to the credit of the Government. For these tax deductions, securing a tax deduction account number (TAN) is essential. The deductor is indeed liable to furnish the tax deduction at source (TDS) return furnishing the particulars of deductees, the kind of payment made, tax deducted, the rate at which it is deducted for every quarter of the financial year. The TDS return furnished supports the income tax department providing the credit of the TDS to the correct deductees.
Moreover furnishing these returns, the deductor should indeed furnish a TDS certificate to the deductee for these tax deducted. Form 16B is one of the TDS certificates to be provided via deductor beneath income tax act 1961 to the deductee for TDS deposited to Government. In this discussion, we have discussed the provisions concerning the Form 16B and the discussion is beneath the mentioned heads:
Details of Tax Deduction and the Liability to Deduct Tax
Provision of the section are:
- There is a transfer excluding the cases of critical acquisition of the immovable property.
- Immovable property pointed towards land or building or portion of the building but excluding the agricultural land.
- The buyer is liable for paying the consideration to the resident seller for these transfers.
- The transfer is for the consideration of Rs 50 lakhs or exceeding that.
- Purchaser should deduct the tax at a 1% rate of consideration either at the time of credit or payment.
- When the seller does not furnish for PAN, TDS at 20% rate under section 206AA.
Guide of TDS Form 26QB & Form 16B
Form 26QB is a return cum challan for the TDS payment to the Government which will be filed electronically for the tax deducted beneath section 194-IA.
Last Date of Form 26QB Under TDS
Form 26QB will be filed in 30 days from the finish of the month where the deduction is made. For instance: if the payment or credit is made on the date 16th April, Form 26QB will be filed on the date 30th May.
Payment or Credit in Installments
In case of payment or credit in installments, as TDS is needed for every installment, Form 26QB will indeed be filed for every deduction.
Multiple Parties to the Transaction
Form 26QB will be filed for every buyer and seller combination.
Example1: If there is one buyer B1 and 2 sellers, S1 and S2, Form 26QB will be filed respectively for B1 and S1 combination and B1 and S2 combination, thus the whole 2 26QB would be furnished.
Example2: In example 1 above, when the second buyer, B2 is indeed added, Form 26QB will be filed respectively for B1 and S1 combination, B1 and S2 combination, B2 and S1 combination, and B2 and S2 combination, thus whole 4 26QB to be furnished.
What If the Payer Will Not Have TAN?
As prescribed above, receiving the TAN is essential for all the deductors to enable the TDS and furnish it to pay towards the Government. It is essential to mention the TAN in all the communication along with the Income-tax (TDS) department. Through the use of Challan No-ITNS 281, TDS is needed to be paid. But, if in case of transfer of immovable property, the person might be parties to the transaction in the majority of the cases and they are not able to use the Challan No. ITNS 281 without TAN and taking the TAN for the one-off transaction is not practicable.
Thus, deductors beneath section 194-IA have given an exception and they would furnish the TDS return without TAN and a separate return cum challan Form 26QB is given to support the deductors without TAN to furnish the TDS return for section 194-IA.
Form 26AS- From TDS payment it takes 7 days, for the tax credit to get prompt in Form 26AS of seller.
Due Date for TDS Form 16B Issuance
Deductor will provide Form 16B to the payee in 15 days from the last date for filing Form 26QB and Form 16B could be made and downloaded from TRACES- TDS reconciliation and analysis correction enabling system. For example, through the exact example, as mentioned for the last date for Form 26QB, Form 16B would be provided on the date 14th June.
Easy Guide to Generate & Download TDS Form16B on TRACES
- Tap here to register as an assessee on TRACES with PAN details and either detail of the tax deducted or the information of the challan or information of Form 26QB. Indeed, enter the verification code and tap on the Proceed. An activation link would be given to the email id via which the account will be made successfully
- If already enrolled login to TRACES here with username as ‘PAN’ and password
- Beneath the downloads tab select Form 16B for the buyer
- File the information like assessment year, acknowledgement no. of Form 26QB, and PAN of the seller
- Form 16B will be available in the requested downloads section under the Downloads type
- Form 16B could now be printed/saved
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View and Download TDS Form 16B in PDF Format
General Queries on TDS Form 16B
Q.1 – What is the Term TDS Form 16B Denotes?
Form 16B is the TDS certificate served by the deductor (Buyer of property) to the deductee (Seller of property) in respect of the taxes deducted and deposited into the Government Account.
Q.2 – From where would I Obtain TDS 16B Form?
Form 16B shall be available for download from the website of the centralized processing cell of TDS (CPC-TDS) www.tdscpc.gov.in
Q.3 – I have inserted the tax amount in the fee, I am not Able to make Form 16B through the TRACES website?
The TDS amount under Form 26QB must be inserted in the field ‘Basic Tax’ (Income Tax) on the Bank’s web portal as the TDS certificate (Form 16B) would rely on ‘Basic Tax’ (Income Tax) only.
Q.4 – Who is Qualified for TDS 16B Form?
Any salaried person whose tax gets deducted by the employer at the source is been qualified to get Form 16. Whatever the concern whether your income comes beneath the tax exemption limit or not the employer should provide the Form 16 when they deducted tax at the source.
Q.5 – What Time Duration Does it Take to Get TDS Form 16B?
Proceed to the TRACES portal( www.tdscpc.gov.in) after 5 days to download Form 16B. II. Steps to Download Form 16B: Register & login on to the TRACES portal ( www.tdscpc.gov.in) as a taxpayer utilizing your PAN.
Q.6 – Why is TDS Form 16B Required?
Form 16B consists of a TDS certificate that is provided by the buyer that is a deductor to a seller. The same assists the assessee to validate the total amount of the tax deducted at the source during buying the property. Deductor deposited the tax amount with the income tax.
