When buying a property in India, you are required to deduct TDS (Tax Deducted at Source) if the property value exceeds Rs. 50 lakh. Form 16B is the certificate you issue to the seller, proving that you have deducted and deposited this TDS with the government.
It not only ensures compliance with tax rules but also makes your transaction fully legal and transparent. This document becomes especially important during tax filing—for both you and the seller.
Key details in Form 16B
Understanding what is inside Form 16B can help you verify your records during property purchases:
Transaction ID: A unique reference for your deal
TDS Amount: The tax you've deducted from the sale value
Property Details: Address and other information
PAN of Buyer & Seller: For tax department validation
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When should you issue Form 16B?
Timing matters. The due date depends on your action sequence:
TDS Deduction Date: First, you must deduct TDS at the time of making payment.
Form 26QB Filing: Within 30 days from the end of the month in which TDS was deducted.
Form 16B Issuance: Within 15 days from filing Form 26QB.
Failing to follow these steps could result in penalties or legal delays in the property handover.
