Easy Guide to Generate & Download Form 16B by TRACES Portal

What is Form 16B?

When any taxpayer sells any immovable property, a certain amount of tax is deducted at source while making the sale. Form 16B is considered as a certificate that contains the details of the Tax Deducted at Source according to Section 3 of the Income Tax Act,1961 during the sale of immovable property.

The TDS deducted under section 194IA of Income-tax Act, 1961, is deducted at the rate of 1% of sales if the consideration is above INR 50,00,000. It is the liability of the buyer to pay such taxes while making payment for the property.

The buyer has to file Form 26QB on the TIN NSDL website stating the details of the transaction. Form 16B is then to be downloaded and submitted by him to the seller.

Form 16B is available for download for 5 days only from the date of filing Form 26QB. The taxpayer (seller in this case) will not be able to claim the actual TDS if it does not match Form 26AS. So Form 16B is very important.

Components of Form 16 Part B

Form 16 part B is the complete statement having numerous information based on the income of the employee towards the organization with components like the salary paid, tax due, amount of tax paid and more. Given below is the components of Form 16B in detail:

Salary Received: The component has the salary structure of the employee in detail which is more explained in the multiple categories like House Rent Allowance (HRA), Leave Travel Allowance (LTA), Leave Encashment, Gratuity, and others.
Allowed Exemptions: The exemption allowed to the employee as per section 10 given in the IT act 1961, are Children education, Conveyance, HRA, Hostel expenditure, medical, etc.
Salary Deductions: The deduction limit has been set at INR 1.5 lakh and the Section 80C/80CCC/80CCD has multiple investment deductions such as Public Provident Fund, Pension Plans, Life Insurance policies, Tax Saving Mutual Funds, Sukanya Samriddhi Scheme. While the Section 80D and Section 80E deductions are also available.
Gross Income: The overall total of the salary received from the employer or other income including income from property or house. Also while at the time of investment there is a requirement of income details from the employee towards the employer.
Net Taxable Salary: The gross income sees the total reduction for the computation of taxable income and the amount is used to calculate the tax liability.
Inclusion of surcharge and education cess with rebate under section 87 with section 89 relief.
Another mentionable amount is the total amount of tax payable on income, tax deducted and the balance tax due or refund.

How to Generate Form 16B:

Step 1: Registration on TRACES

The first step to generate Form 16B is to register on the TDS website TRACES at https://contents.tdscpc.gov.in. You can do so by clicking on “Register as New User” and then on “Taxpayer”.

Step 2: Log-in