Form 16B Download Process

Form 16B is a vital tax document that the buyer issues to the seller after deducting TDS on a property transaction exceeding Rs. 50 lakh. It serves as proof that the buyer has deposited the TDS with the government. This document is essential for property buyers in India to stay compliant with income tax regulations. It is also commonly required during property registration. Timely downloading of Form 16B helps avoid unnecessary legal issues or financial delays. In this blog, you will learn about the Form 16B download process.

What is Form 16B?

Form 16B serves as a TDS certificate that the buyer gives to the seller after purchasing a property worth more than Rs. 50 lakh. This is mandatory under Section 194-IA of the Income Tax Act. It confirms that 1% of the property's sale value has been deducted as TDS and deposited with the government. This certificate promotes transparency and supports tax compliance in large-scale property transactions.

Components of Form 16B

Below are the key components of Form 16B:

1. Buyer and Seller Details

This section displays the full name, PAN, and address of both the buyer and the seller. These details match the information filled in Form 26QB. The buyer is the person who deducts the tax, and the seller is the one who receives the payment for the property. This section ensures proper identification of both parties in the transaction.

2. Property Information

Form 16B includes the complete address of the property. It mentions whether the property is residential or commercial. This section helps the authorities link the tax deduction with a specific property and verify the transaction under the Income Tax Act.

3. Transaction Details

This part contains the total consideration or sale value of the property. It also mentions the date of payment and the mode of payment, such as lump sum or installments. This information confirms that the TDS is calculated based on the actual sale amount agreed upon by both the buyer and the seller.

4. TDS Deducted and Deposited

This part reflects the precise TDS amount deducted, equal to 1% of the property's sale price. It also mentions the date of deduction and the date of deposit with the government. This verifies that the buyer has met their obligation under Section 194-IA of the Income Tax Act.

5. Form 26QB Acknowledgment and Challan Details

This part of the form contains the unique acknowledgment number received after filing Form 26QB. It also shows the Challan Identification Number (CIN), which confirms that the tax payment has reached the government. These numbers help trace the payment for future reference and verification.

6. Assessment Year and Certificate Number

Form 16B includes the relevant assessment year for which the TDS is applicable. It also has a certificate number that uniquely identifies the Form 16B document. These details help in linking the certificate to a specific financial period and transaction.

7. Verification Section

This section contains a verification statement from the buyer. It confirms that the tax is deducted and paid correctly. The form includes either a digital signature or a system-generated confirmation to validate the authenticity of the certificate.

Who Need to Download Form 16b?

The following entities needs to download Form 16B:

1. Individual or Entity Purchasing Property Worth Over Rs. 50 Lakh

Any person who purchases an immovable property for more than Rs. 50 lakh must deduct 1% TDS under Section 194-IA of the Income Tax Act. After paying this amount through Form 26QB, the buyer must download Form 16B. This rule applies to residential and commercial property but does not cover agricultural land.

2. Buyer Without a TAN

A buyer does not need a Tax Deduction Account Number (TAN) to deduct and deposit TDS on a property purchase. The buyer uses their PAN and the seller’s PAN to fill out Form 26QB. After this, the buyer can log in to the TRACES portal and download Form 16B. This process ensures that even individuals not registered as tax deductors follow the law.

3. Joint Buyers and Sellers

If there are multiple buyers or sellers, each buyer must file a separate Form 26QB for each seller. This means that if two buyers purchase a property from two sellers, they need to submit four separate Form 26QBs. After filing these, each buyer must download a separate Form 16B for each seller. This step helps keep the transaction details correct and avoids confusion during tax assessments.

4. Buyer is Responsible for TDS Deduction

The Income Tax law places the duty to deduct TDS on the buyer, not the seller. The buyer must calculate 1% of the sale value, pay it to the government through Form 26QB, and then issue Form 16B. This form acts as proof that the buyer fulfills their legal duty and helps the seller claim TDS credit.

Prerequisites to Download Form 16B

Here are the prerequisites for downloading Form 16B:

1. Register PAN on the TRACES Portal

The buyer must register on the TRACES portal using their PAN. The TRACES portal is the official website of the Income Tax Department that provides access to TDS-related services. The system uses the PAN to identify the buyer and allow access to Form 16B. Buyers who do not have a TAN can still register and access the portal with just their PAN credentials.

2. Submit TDS through Form 26QB

The buyer must pay the 1% TDS using Form 26QB before requesting Form 16B. Form 26QB is a challan-cum-statement for TDS on property transactions. After the payment, the system generates a unique acknowledgment number. This number is essential to request and issue Form 16B from the TRACES portal.

3. Keep Seller’s PAN Ready

The buyer must enter the correct PAN of the seller for downloading Form 16B. The TRACES portal matches the PANs of both parties with the details in Form 26QB. A mismatch in the PAN can stop the process or generate errors. The PAN also ensures that the TDS credit reflects in the seller’s Form 26AS.

4. Select the Correct Assessment Year

While requesting Form 16B, the buyer must select the right assessment year. The assessment year is the year following the financial year in which the property purchase occurs. For example, if the transaction takes place in FY 2024–25, then the correct assessment year is 2025–26. Choosing the wrong year leads to failure in locating the form.

5. Use a Valid TRACES Login and DOB as Password

The buyer needs a valid login ID and password for the TRACES portal. After placing the request, the form becomes available for download in a ZIP file. This file opens with a password, which is the buyer’s date of birth in the format DDMMYYYY. Without this password, the buyer cannot access the document.

Form 16B Download Process

Here is a step-by-step process for Form 16B download:

Step 1: Open the TRACES Portal and Log In

Visit the official TRACES portal. Enter your PAN as the user ID. Type your password and the captcha code to access the portal. This portal allows taxpayers to manage TDS-related tasks without a TAN.

Step 2: Go to the Downloads Section

After logging in, you reach the dashboard. Select the “Downloads” option from the main menu at the top of the page. From the list, choose Form 16B (For Buyer). This option is only available if you log in as a taxpayer.

Step 3: Fill in Required Transaction Details

Select Form Type as Form 26QB. Choose the correct Assessment Year, such as 2025–26, if the transaction occurs in FY 2024–25. Enter the Acknowledgment Number received after Form 26QB submission. Provide the PAN of the Seller exactly as given in the transaction form.

Step 4: Verify Buyer Details

The portal displays the name and PAN of the buyer. Check if these details match your information. These details come directly from the Form 26QB record. If the details are correct, click Proceed to submit the download request.

Step 5: Note the Request Number

After submitting the request, the system generates a Request Number. This number helps you track the status of the certificate request. Write it down or take a screenshot to avoid delays when checking later.

Step 6: Track Request under “Requested Downloads”

Return to the Downloads tab and click Requested Downloads. Enter your Request Number or the date of the request to find the current status. The status shows as “Submitted” at first. It usually changes to “Available” within 24 to 48 hours.

Step 7: Download the Form 16B Certificate

Once the status becomes “Available,” click on HTTP Download. The file downloads as a ZIP file. Store the file on your device for future reference. The certificate will be available for download for a limited time, so download it once ready.

Step 8: Open the File with Your Date of Birth

To open the ZIP file, enter your date of birth in the format DDMMYYYY (e.g., 02071985). After entering the correct password, extract the PDF file. This PDF contains your Form 16B certificate, which you can print or store for future use.

Common Issues and How to Resolve Them

Listed below are the common issues in downloading Form 16B and their solutions:

1. TRACES Status Shows “Submitted” or “Pending” for Too Long

After filing Form 26QB, TRACES needs some time to process the payment and verify the transaction. In most cases, the status changes from “Submitted” to “Available” within four to seven working days. If the status does not update, confirm that the payment clears from your bank account. Also, ensure that Form 26QB includes the correct PAN details and transaction information. If the delay continues, raise a support request through the TRACES Helpdesk on the

2. TRACES Shows “Failed” When You Request Form 16B

Sometimes, the request fails due to incorrect input. This may happen when the buyer enters the wrong PAN, Form 26QB acknowledgment number, or assessment year. A mismatch in any of these fields stops the request from processing. In this case, recheck every detail before submitting the request again. Wait for one or two days if your payment was made recently, as TRACES may still process it.

3. Access Denied for Users Outside India (NRI Issue)

Buyers who live outside India, such as NRIs, often face login issues on TRACES due to IP restrictions. TRACES may not allow access from foreign locations. In such cases, the buyer can share login details with a trusted person in India who can access the portal and complete the download process. This ensures the form is collected without delay.

4. ZIP File Does Not Open After Download

After downloading Form 16B, the file saves as a ZIP folder. To open it, the buyer must enter their date of birth in DDMMYYYY format (for example, 15081990). If the password does not work, confirm that the date is entered without slashes, spaces, or extra characters. The format must exactly match what appears on the PAN records.

5. Seller Tries to Access Form 16B

Only the buyer has the authority to download Form 16B from the TRACES portal. The seller cannot access the form directly. If the seller needs it for their records or for tax filing, they must request a copy from the buyer. This process protects the integrity of the TDS transaction and prevents unauthorized access.

Conclusion

Form 16B is a crucial document that confirms the deduction and deposit of TDS on a high-value property purchase. It acts as proof that the buyer has fulfilled their tax responsibility under the law. This certificate helps both the buyer and the seller maintain proper tax records. Buyers should not delay the Form 16B download after submitting Form 26QB. Timely action ensures smooth property registration and avoids any legal or financial issues in the future. If you want any type of help regarding tax planning, contact Online Legal India to get assistance.