TDSMAN Blog

Smart & Easy TDS Software for Preparing TDS Returns

TDSMAN Blog - Smart & Easy TDS Software for Preparing TDS Returns

Procedure to generate Form 16B

Form 16B shall be generated by TDS-CPC after the processing of Form 26QB (statement come 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.
  • 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.

Source: TRACES

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Important CPC (TDS) Communication on Payment of Taxes as a “Demand Payment”, Deducted on Purchase of Immovable Property

CPC (TDS) has issued an advisory communication to the purchasers of the property regarding payment of taxes, deducted on purchase of immovable property.

The issued communication has been given below:

Dear Purchaser of Property,

Greetings from CPC (TDS)!

As part of the purchase of immovable property, you have deducted taxes in accordance with provisions of section 194IA of Income Tax Act, 1961 against Consideration exceeding Rs. 50 Lakhs.

However, the payment of the tax deducted was reported as “Demand Payment”, instead of payment under “TDS on Property” under “Form 26QB”, on the payment portal of NSDL. This resulted into the TDS amount not being reflected in Part A2 of 26AS statement of the Seller of the property and you have not been able to download TDS Certificate in Form 16B.

purchase-of-immovable-property-121115

Had the payment been made using “Form 26QB” link, the Tax Credit would have been given to the seller of the property automatically.

To address the above mistake and to ensure transfer of Tax Credit to the Seller of the property, CPC (TDS) provisioned for the facility to exercise the option for transfer of such credit to the seller at the time of submission of request for Form 16B after Registration and Login to TRACES web-portal.

However, since you did not to exercise the option for transfer of such credit to the seller, Tax Credit was not reflected in Part A2 of Seller’s Form 26AS, thereby causing inconvenience.

To address the above issue, CPC(TDS) has taken suo moto action to transfer Tax Credits into Seller’s 26AS statement for the payment of TDS reported as “Demand Payment” to the extent of TDS amount mentioned therein.

You are advised to be careful in future while paying the tax deducted with reference to the above. The payment of tax deducted should be made using “Form 26QB” link at NSDL and “Demand Payment” facility is meant only for the purpose of closure of demand raised by CPC(TDS).

CPC (TDS) is committed to provide best possible services to you.

CPC (TDS) TEAM

Source: TRACES

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FAQ on Form 16B

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

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