TDS
Generation of Form – 16A and 26QB
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Form 16B
Under the Income Tax Act, 1961, salaried individuals are taxed as per applicable slabs and are required to file tax returns before a designated date each year is one of the certificates issued by employers that contain information pertaining to what is required by salaried individuals to file their income tax returns.
Taxpayers often confuse between Form 16A and Form 16B while filing their returns. It must be understood that despite being included under the same certificate, each form is used for distinct purposes. Taxpayers must find out about their specific purposes to streamline the tax filing process to a great extent.
Due date for issuance of Form 16B
Deductor shall issue Form 16B to the payee within 15 days from the due date for furnishing Form 26QB and Form 16B can be generated and downloaded from TRACES – TDS Reconciliation and Analysis and Correction Enabling System. For eg: Using the same example as above w.r.t due date for Form 26QB, Form 16B shall be issued on 14th June.
Deductor shall issue Form 16B to the payee within 15 days from the due date for furnishing Form 26QB and Form 16B can be generated and downloaded from TRACES – TDS Reconciliation and Analysis and Correction Enabling System. For eg: Using the same example as above w.r.t due date for Form 26QB, Form 16B shall be issued on 14th June.
Section 194-IA TDS on Sale or Property
TDS on sale of immovable property is governed by Section 194-IA of the Income Tax Act. Section 194 mandates deduction of TDS by the buyer at the rate of 1% at the time of payment of consideration to the seller. TDS on immovable property is not required for agricultural property and transfer of immovable property where the sale consideration is less than Rs.50 lakhs.
TDS on sale of immovable property is governed by Section 194-IA of the Income Tax Act. Section 194 mandates deduction of TDS by the buyer at the rate of 1% at the time of payment of consideration to the seller. TDS on immovable property is not required for agricultural property and transfer of immovable property where the sale consideration is less than Rs.50 lakhs.
Form 26QB
Form 26QB is a return-cum-challan form for the payment of Tax Deducted at Source (TDS) to the government for deductions made under Section 194-IA of the Income Tax Act, 1961. This section of the Act specifically deals with transactions involving the sale of immovable property and the applicable TDS along with Form 26QB needs to be submitted within 30 days counted from the end of the month in which TDS was deducted. For instance, if the transaction occurred on 14th March then Form 26QB must be mandatorily submitted by 30th April.
Key Features of Form 26QB under Section 194-IA
The Income Tax Act, 1961 has laid out a few key rules regarding sale and purchase of immovable property. In such transactions covered under Section 194-IA, the buyer, also known as the deductor, is required to deduct TDS if the transaction value is more than Rs. 50 lakhs. Subsequently, the deductor will required to issue Form 16B to the deductee (seller).
The Income Tax Act, 1961 has laid out a few key rules regarding sale and purchase of immovable property. In such transactions covered under Section 194-IA, the buyer, also known as the deductor, is required to deduct TDS if the transaction value is more than Rs. 50 lakhs. Subsequently, the deductor will required to issue Form 16B to the deductee (seller).
All the requirements for Form 26QB have been listed under Section 194-IA. They are:
1. Under Section 194-IA, the buyer must deduct TDS at the rate of 1% of the total sale amount at the time of completing the transaction.
2. TDS u/s 194-IA is not applicable to transactions involving agricultural land.
3. TDS on immovable property sale is not applicable for transactions valued at less than Rs. 50 lakhs. For transactions beyond this limit, TDS is deducted on the entire transaction amount. For instance, if the property cost Rs. 52 lakhs then you have to pay TDS on Rs. 52 lakhs and not Rs 2 lakhs (Rs. 52 lakhs – Rs. 50 lakhs).
4. If the payment is made in installments then TDS is deducted proportionately on each individual installment.
5. The buyer does not need to obtain Tax Deduction Account Number (TAN) to deduct and deposit TDS. However, PAN is mandatory for both the seller and the buyer in case TDS deduction occurs using Form 26QB.
6. The buyer is supposed to deposit TDS and submit form 26QB within 30 days from the end of the month in which TDS was deducted.
7. In case there are multiple buyers and sellers involved in the transaction, the deductor will be required to submit multiple Form 26QB.
8. After deducting and depositing TDS, the buyer must furnish a TDS certificate to the seller within 15 days of the transaction in lieu of the tax deducted and deposited to the government.
9. The buyer must then obtain Form 16B and furnish it to the seller.
1. Under Section 194-IA, the buyer must deduct TDS at the rate of 1% of the total sale amount at the time of completing the transaction.
2. TDS u/s 194-IA is not applicable to transactions involving agricultural land.
3. TDS on immovable property sale is not applicable for transactions valued at less than Rs. 50 lakhs. For transactions beyond this limit, TDS is deducted on the entire transaction amount. For instance, if the property cost Rs. 52 lakhs then you have to pay TDS on Rs. 52 lakhs and not Rs 2 lakhs (Rs. 52 lakhs – Rs. 50 lakhs).
4. If the payment is made in installments then TDS is deducted proportionately on each individual installment.
5. The buyer does not need to obtain Tax Deduction Account Number (TAN) to deduct and deposit TDS. However, PAN is mandatory for both the seller and the buyer in case TDS deduction occurs using Form 26QB.
6. The buyer is supposed to deposit TDS and submit form 26QB within 30 days from the end of the month in which TDS was deducted.
7. In case there are multiple buyers and sellers involved in the transaction, the deductor will be required to submit multiple Form 26QB.
8. After deducting and depositing TDS, the buyer must furnish a TDS certificate to the seller within 15 days of the transaction in lieu of the tax deducted and deposited to the government.
9. The buyer must then obtain Form 16B and furnish it to the seller.
FORM 16 GENERATION
GENERATION OF FORM 16A
₹ 600/-
(Per Quarter)
- Request in TRACES
- Downloading TXT File from TRACES
- Generation of Form 16A
Conditions Apply: –
- TRACES Login Credentials to be shared with us
- DSC should be registered in TRACES
- The above charges are for upto 25 PAN Numbers In each Qtr.
For anything above this limit click on ENQUIRE NOW.
GENERATION OF FORM 16 - PART A
₹ 600/-
(Per Year)
- Request in TRACES
- Downloading TXT File from TRACES
- Generation of Form 16 Part A
Conditions Apply: –
- TRACES Login Credentials to be shared with us
- DSC should be registered in TRACES
- The above charges are for upto 50 PAN Numbers In a Year.
For anything above this limit click on ENQUIRE NOW.
GENERATION OF FORM 16 - PART A
₹ 750/-
(Per Year)
- Request in TRACES
- Downloading TXT File from TRACES
- Generation of Form 16 Part A
Conditions Apply: –
- TRACES Login Credentials to be shared with us
- DSC should be registered in TRACES
- The above charges are for upto 50 PAN Numbers In a Year.
For anything above this limit click on ENQUIRE NOW.
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