FAQ on Form16B (TDS Certificate on Sale/Purchase of Property)

1. What is Form 16B?

Form 16B is the TDS certificate to be issued by the deductor (purchaser/buyer of immovable property) to the deductee (Seller of immovable property) in respect of the taxes deducted on the sale of immovable property and deposited into the Government Account.

2. Who can download Form 16B?

Only a purchaser/buyer, who is registered on TRACES as tax-payer can download Form 16B, using unique acknowledgment number generated while filing of Form 26QB (statement cum challan form).

3. From where will I get the Form 16B?

Buyer/ Purchaser of immovable property can download Form 16B after registering on TRACES as Tax Payer.

4. What is the procedure to generate the Form 16B?

Form 16B shall be generated by TDS-CPC on processing the Form 26QB (statement cm challan form) filed by buyer. Following are the steps to generate form 16B:

• Buyer has to register on TRACES as Taxpayer.
• Login to TRACES as tax payer and submit download request for Form 16B under ‘Downloads’ tab. File will be available under ‘Requested Downloads’ in ‘Downloads’ tab.

Form 16B will be generated in PDF file and password to open this file is date of birth of the buyer in ddmmyyyy format i.e. if the date of birth is 4th October 1976, password would be 04101976.

5. While downloading Form 16B from TRACES, Is there any restriction on the number of request that user can place?

There is no restriction on the number of requests that buyer/purchaser can place simultaneously for different Forms 16B pertaining to different sellers.

6. Can I download Form 16B without acknowledgement number?

No.

7. I have lost 9 digit alphanumeric acknowledge number which was generated while filing form 26QB. Now from where can I get acknowledgement number to download form 16B?

It is advised to note down the acknowledgment number. However, in case if it is lost, the acknowledgement number is also be reflected in Part ‘F’ of Form 26AS of the buyer and Part ‘A2′ of Form 26AS of the seller. 

8. Is there any provision in Income tax act 1961 or Income tax Rules 1962 format for Form16 B?

Form 16B is issued as per the provisions of Rule 31(1) of Income tax Rules 1962.

9. I have deducted TDS on property along with education cess. However, Only TDS on property amount is reflecting in Form 16B and not the amount of education cess. Why?

No surcharge and education cess is applicable while deducting tax on sale of property. Deductor/buyer is required to deduct only income-tax @1% on entire transaction amount. If surcharge and education cess is deducted, same will not reflect in Form 16B.

Source: TRACES