Form 16B basically is an indicator of the amount of money that has been deducted as property Tax Deducted at Source (TDS). The buyer, in this case, is required to basically minus the TDS on property at the time of the property sale.
Form 16B which is a TDS certificate reflects the amount that has been deducted as TDS on property that has been deposited by the buyer with the Income Tax Department. Buyer is required to deduct TDS on property at the time of sale of the immovable property. The TDS is deducted at 1% from the amount that the buyer has to pay the seller. That amount is then to be deposited with the Income Tax Department.
After the amount has been deposited with the Income Tax Department the buyer will have to issue Form 16B to the seller. This is a proof of the TDS being deducted on the property and that it is deposited with the government. Form 16 is TDS certificate for the TDS deducted from salary, Form 16A is TDS certificate for the TDS deducted from all other types of payments, Form 16B is TDS certificate for the TDS being deducted on the sale of property.
Form 16B can be downloaded from TRACES website. Once the buyer furnishes the details in Form 26QB and deposits the TDS, he or she can download Form 16B online. This form is to be given to the buyer. The procedure for downloading the form is as follows:
- Log on to TRACES.
- If you are a first time accessor of the website, then you will have to register an account and furnish all the required details.
- The details you have submitted will be then validated and then your account will be created.
- Username will be your PAN number and you can choose the password of your choice.
- Activation link will be sent to your personal mailbox and you will get a code on your mobile number in order to activate the account.
- After the account has been created, you can access the download section and download the Form 16B for Buyer.
- The assessment year, PAN number and acknowledgement number of the seller has to be furnished.
- After those have been submitted, Form 16B will be made available in the Downloads section.
- The form can be printed and signed and then it is to be delivered to the buyer.
The buyer can also access the details of TDS deducted through the Form 26AS. Form 26AS is a consolidated statement of the total TDS deducted which includes details that are reflected in Form 16, Form 16A and Form 16B.