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Do you know Form 16B is essential to approve the tax amount reduced at the initial stages of purchasing a property? A deductor issues this TDS certificate to a seller.
If you are planning to purchase a property, finding out the specifications of the specific form becomes crucial.
Keep scrolling to find details on how to get Form 16B and variables linked with it.
Form 16B is a TDS certificate issued by a deductor under the Income-tax Act, 1961. This is a deduction against the purchase of a new property.
A purchaser needs to deduct the TDS amount during a property sale. This amount needs to be deposited with the Income Tax Department.
According to Section 194 of the ITA, purchasers can deduct 1% as TDS rate. Once this tax amount is submitted to the IT Department, buyers must issue Form 16B income tax to a seller.
However, TDS does not apply to immovable and agricultural properties whose sale value is lower than ₹50 lakh.
Now let’s understand who is eligible to file Form 16B.
The common parameters against Form 16B are -
Now, let’s learn how to generate Form 16B and download it with simple steps.
The steps to download Form 16B online are -
From this, you must be aware now that you need to submit Form 26QB first to get Form 16B. Therefore, let’s check the steps on how to fill Form 26QB and file it without hassle.
You can only download Form 16B by entering the acknowledgement number of Form 26QB. Hence it would help if you filled the Form 26QB first.
You can find Form 26QB on the TIN or Tax Information Network of the Income Tax Department. Then, fill in the form and make tax payments via online banking. You can also submit the said form to an authorised bank.
The steps to fill and file Form 26QB online are as follows -
A challan with details on payment, CIN, and bank name will be generated.
Now let’s check the components or format of Form 16B for further details.
The basic components of Form 16B include -
Individuals should check these details thoroughly before proceeding with Form 16B download.
You should know that deductors are liable to issue Form 16B to a payee within 15 days of furnishing Form 26QB.
These are some essential details taxpayers planning to purchase a property must know. It is recommended to check the official websites for updated rules.
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Disclaimer: This information is added only for informative purposes and collected from different sources across the Internet. Digit Insurance is not promoting or recommending anything here. Please verify the information before making any decisions.
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