Form 16B is like a receipt (or certificate) for taxes when you buy or sell property. It shows the amount of tax that’s taken out of the money when you buy a property.
This tax, called TDS, is deposited with the income tax department by the buyer.
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Form 16B is different from other tax forms and is specifically for verifying the tax deducted when a property is sold. It’s given by the person who buys the property (buyer) to the person who sells it (seller).
The password for your Form 16B is your (the buyer’s) date of birth in the format DDMMYYYY.
If you have bought a property, you can download your tax certificate known as Form 16B from the platform called Traces.
To download it, you’ll need to first register on TRACES as the taxpayer.
It’s important for you to download the form 16B as you need to give it to the person who sold you the property. It shows the amount of tax that has been taken out of the money while purchasing that piece of property, and it confirms that you have paid this tax (amount of money deducted) to the government.
You can register on TRACES using your PAN (Permanent Account Number).
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.
Now, this form has two parts: Part A and Part B.
Part A includes the PAN and other details of the employer and Part B includes the details of the employee.
Form 16A and Form 16B are different.
First let’s talk about Form 16A. It’s a certificate of TDS (Tax Deducted at Source).
Unlike Form 16, which just shows you your salary income coming from one employer, Form 16A is used for the tax that’s deducted from all your income sources.
It includes details like the employer’s name, PAN (Permanent Account Number), and TAN (Tax Deduction and Collection Account Number); the employee’s name, PAN, and TAN; payment details; TDS (Tax Deducted at Source) payment number; and the date of deposit along with the deposited tax amount.
That said, we have already discussed what Form 16B is, it’s a certificate of tax that you get when you’re buying or selling a property. It shows the amount of tax that’s deducted from the amount you’ve paid for purchasing a particular property.
To generate Form 16B, you can simply download the form from the TRACES portal by registering or logging in on the platform.
Here are the steps to download Form 16B
- Begin by going on the TRACES site
- Go to Taxpayer Tab and register or log in using your PAN.
- Go to the Download menu
- Select Form 16B (for buyer)
- Enter the details related to the property transaction for which you’re downloading Form 16B.
In What Context Is Form 16B Used
It’s used to show the tax on the property purchased or sold.
Deducted issues Form 16B to the Payee.
Form 16B shows the details of the tax that has been deducted at source on the money that the person has made on buying a particular property. It’s important to note that this property needs to be immovable as in a building, land, house, and so on.
Form 16B is important as it acts as the proof that your TDS has been deducted and deposited to the government for the property you’ve purchased or sold.
It should be issued in a property transaction within 15 days from the due date of submitting Form 26QB.