Form 16B - What Is The Meaning Of Form 16B And Its Importance | HRMantra HR Software

Form 16B - What Is The Meaning Of Form 16B And Its Importance | HRMantra HR Software

5-6 minutes

Form 16B looks something like a receipt (or certificate) for your taxes when you buy or sell any of your property. It''s the amount of tax that''s taken out of the money in case of the purchase of any property. This tax, also known as TDS, has to be deposited by the buyer with the income tax department.

Table of Content

• Meaning of Form 16B: What is Form 16B
• Password for TDS Form 16B: What is the Password for TDS Form 16
• Download Form 16B: How to Download Form 16B
• Difference Between Form 16, Form 16A, Form 16B
• Process to Generate Form 16B
• Which is the Context in Which Form 16B is Used
• Who Issues Form 16B and To Whom is it Issued
• What Are the Details of Information in Form 16B
• Why Form 16B is Important for a Property Seller in India
• When Is Form 16B Issued in a Property Transaction

Meaning of Form 16B: What is Form 16B

Form 16B is different from the rest of the tax forms and is made for the specific purpose of verifying the tax deducted while selling a property. It''s given by the person who buys the property to the person who sells it.

Password for TDS Form 16B: What is the Password for TDS Form 16

Your password for Form 16B is your (buyer''s) date of birth in DDMMYYYY format.

Download Form 16B: How to Download Form 16B

If you have purchased a property, you can download your tax certificate, which is called Form 16B, from a platform known as TRACES.

To download it, you will need to first register on TRACES as a taxpayer. You shall have to download Form 16B because you have to furnish this to the person who is selling you the property. It shows the amount of tax that has been taken out of the money while purchasing that piece of property and confirms that you have paid this tax, the amount of money deducted, to the government.

You can register on TRACES using your PAN (Permanent Account Number).

What is the Difference Between Form 16, Form 16A, Form 16B

Form 16 is the certificate that your employer gives you (or companies give to their employees). It shows how much salary you have earned in that particular year and how much tax has been deducted from it.

This form is divided into two parts: Part A and Part B. The details in Part A include the employer''s PAN and other information, while Part B contains the employee''s details.

Form 16A is a certificate of TDS, i.e., a certificate of tax deducted at source. It is used for tax deducted from all sources of income, unlike Form 16, which only shows salary income from one employer. It includes the name of the employer, PAN, TAN, payment particulars, number of TDS payment, and the date and amount of tax deposited.

Form 16B, as already discussed, is a certificate of tax you receive when buying or selling a property. It reflects the amount of tax being deducted from the amount you paid for purchasing a particular property.

Process to Generate Form 16B

Still need help on how to download Form 16B? Just go ahead and log in/register for the TRACES portal.

Downloading Form 16B mainly involves the following steps:

1. Open the website of TRACES.
2. Under the Taxpayer Tab, register or log in via your PAN number.
3. Select the Download menu.
4. Select Form 16B (for buyer).
5. Enter the details of the transaction concerning the property for which you are going to download Form 16B.

Which is the Context in Which Form 16B is Used

Form 16B is used to deduct tax when any immovable property is bought or sold.

Who Issues Form 16B and to Whom

The deductor issues Form 16B as Deductor to Payee.

What Info Does Form 16B Contain

Form 16B indicates the details of the tax deducted at the source on the money made by someone for buying a particular property. This property must necessarily be immovable, such as a building, land, house, and so on.

Form 16B is important because it acts as an acknowledgment that TDS on your behalf was deducted and deposited with the government for the property purchased or sold.

When does Form 16B get issued in a property transaction?

Form 16B should be issued in a property transaction within 15 days from the due date of submitting Form 26QB.

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