What is Form 16B?
- Form 16B is a certificate of tax deducted on purchase of property, TDS under section 194IA is required to be deducted when a person buys an immovable property for consideration greater than 50lakhs of rupees.
- Buyer will be required to deduct the TDS of the seller and file form 26QB, after filing 26QB, form 16B will be generated which serves the basic purpose of the TDS certificate depicting the basic details of the buyer and seller of property and consideration and amount of TDS deduction.
- Traces facilitates the buyer of immovable property to download Form 16B after registering on TRACES as a taxpayer.
- The buyer of the property would be required to issue Form 16B to the Seller of the property in respect of the TDS deducted and deposited with the government.? Users can register on the basis of “PAN”
What is Form 16C?
- Form 16C is a Certificate under section 203 of the Income-tax Act, 1961 for tax deducted at the source which is issued by Individual or HUF on payment of Rent under section 194IB.
- This certificate i.e., Form 16C is required to be issued to the payee when TDS u/s 194-IB is deducted. It acts as proof for the payee that TDS has been deposited on his behalf to the government.
- It is important to note that; a person who is deducting TDS needs to issue this form within 15 days from the date of the filing of challan (Form 26QC).
What is Form 16D?
- Form 16D is a TDS Certificate issued by a Payer for payment of a commission, brokerage, contractual fee, the professional fee under section 194M. It contains details of the nature of payment and TDS deducted on it.
- Section 194M has been applicable from the 1st of September 2019. Thus, Form 16D can be downloaded from FY 2019-20 onwards.
- As per the section, if the payments to resident contractors and professionals exceeding INR 50,00,000 Lakhs during the Financial Year, the payer/deductor has to deduct tax at the rate of 5% from the sum payable to a resident payee/deductee.
- As per the Central Board of Direct Taxes (CBDT) notification, the due date of payment of TDS on payments to resident contractors and professionals is within a period of thirty days from the end of the month in which the payment has been made. Hence, Form 16D has to be issued 15 days from the date of issuance of Form 26QD.
Details of Form 16D
- Name and address of Deductor and Deductee
- PAN/Aadhaar number of the Deductor and Deductee
- Financial Year of Deduction
- Transaction Details
- Details of Tax Deposited
- Challan Identification Number
Example
A professional payment of INR 65 Lakhs has been made in the Financial Year 2019-2020. The payment is made on the 15th of August. Hence, the tax deducted must be deposited with the government and Form 26QD should be filed on or before the 30th of September. Furthermore, the deductor should also issue the Form 16D TDS certificate by October 15.
