Can sellers claim a refund for TDS under Form 16B and download it without TAN?

When selling property, TDS (Tax Deducted at Source) is often deducted under Section 194-IA, which applies to property transactions. After the transaction, sellers are entitled to claim a refund if the TDS deducted exceeds the actual tax liability. This is where Form 16B comes into play, an essential document issued by the buyer (deductor) and made available through the TRACES portal.

One of the key questions many sellers have is whether they can claim this refund without the need for a TAN (Tax Deduction and Collection Account Number), which is typically required for TDS-related transactions. The good news is that for property transactions under Section 194-IA, sellers can download Form 16B without needing a TAN. By properly declaring the transaction and reconciling the TDS amounts with Form 26AS, sellers can ensure they receive any excess TDS deducted.

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Table of Contents

• Can Sellers Claim a Refund for TDS Under Form 16B?

• Refund Eligibility for TDS Under Form 16B

• Downloading Form 16B Without TAN

• Budget 2024–25 Amendments

• Recent Updates (FY 2024–25)

• Conclusion

• FAQs

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Can Sellers Claim a Refund for TDS Under Form 16B?

Yes, sellers can claim a refund for any excess TDS deducted under Form 16B by reporting it in their ITR and ensuring it matches the details shown in Form 26AS. If the TDS credit in Form 26AS is higher than the actual amount deducted, the seller is eligible to receive a refund after the ITR is processed.

Refund Eligibility for TDS Under Form 16B

Sellers who have property transactions that fall under Section 194-IA are eligible to claim a refund for any excess TDS deducted under Form 16B. For this to happen, sellers need to ensure that the TDS deducted, as reflected in Form 26AS, matches the actual amount deducted as per Form 16B. If the TDS amount reflected in Form 26AS is higher than what was actually deducted, the seller is entitled to receive a refund after filing Income Tax Return (ITR).

It is essential to understand that the refund process is applicable only when the seller’s TDS details are correctly reflected in Form 26AS. If there’s any mismatch or technical error, the refund may not be processed smoothly.

Refund Process

The refund process begins with the seller filing their ITR for the relevant financial year. The seller must declare the capital gains from the property sale transaction in the ITR and match the TDS amounts reflected in Form 26AS with the details in Form 16B.

1. Filing ITR: The seller needs to file an Income Tax Return (ITR) where the capital gains from the property transaction are disclosed.

2. Reconciliation with Form 26AS: Sellers should check the Form 26AS, which provides a detailed record of the TDS credit, and verify that the TDS amount deducted as per Form 16B matches the amount shown in Form 26AS. Any discrepancies need to be resolved before proceeding with the refund.

3. Processing of Refund: Once the ITR is processed, the excess TDS will be refunded to the seller. The refund is typically credited to the seller’s bank account linked with the PAN.

If there are no discrepancies, the refund is usually processed after the ITR is successfully filed, which can take 2-3 months depending on the processing time of the Income Tax Department.

Exceptions

While the refund process is straightforward, there are certain exceptions that sellers should be aware of:

1. Mismatch in TDS Amounts: If the Form 26AS shows a lower TDS credit than what was deducted, the seller must approach the Income Tax Department to resolve the issue. This can happen due to technical glitches or errors in the TDS filing by the buyer (deductor).

2. Errors in Form 16B: If there is a mistake in Form 16B issued by the buyer, such as an incorrect TDS amount or other details, the seller should request a corrected version of the form from the buyer.

3. Excess TDS in Other Areas: If the TDS deducted in areas other than property sale (for example, rent payments or professional fees) is incorrectly reflected in Form 26AS, sellers need to resolve this issue before proceeding with the refund claim.

   
   

Downloading Form 16B Without TAN

A common query among property sellers is whether they need a TAN (Tax Deduction and Collection Account Number) to download Form 16B. For property transactions under Section 194-IA, buyers are responsible for deducting TDS, and the process does not require a TAN.

Procedure for Download

Here’s the procedure for sellers to download Form 16B without the need for a TAN:

1. Form 26QB Filing: The buyer (deductor) must first file Form 26QB with the TDS amount deducted on the property transaction. This form is required for reporting the TDS on property transactions and is filed by the buyer online.

2. Generation of Form 16B: After the buyer files Form 26QB, Form 16B is automatically generated on the TRACES portal by the Income Tax Department. This form includes the details of the TDS deducted and is made available to the seller.

3. Access by Seller: The seller can log into the TRACES portal using their PAN to access and download Form 16B. No TAN is needed for this process.

   
   

Timeline for Issuance

Form 16B must be issued within 15 days of the due date for filing Form 26QB. Since Form 26QB is filed by the buyer, the timeline for Form 16B issuance is as follows:

1. Buyers File Form 26QB: The buyer needs to file Form 26QB with the correct TDS amount within 30 days from the end of the month in which the TDS was deducted.

2. Form 16B Issuance: Once Form 26QB is filed, Form 16B is automatically generated and available for download within 15 days after the due date of filing Form 26QB.

   
   

Budget 2024–25 Amendments

The Budget 2024 introduced several key amendments related to TDS filing and refunds:

1. Six-Year Time Limit for Revising TDS Returns: As per the new budget amendment, there is now a six-year time limit for revising TDS returns, effective from March 31, 2025. This means that taxpayers cannot request a revision or correction for TDS returns filed prior to FY 2019–20 after the cutoff date.

2. Changes in TDS Refund Mechanism: Budget 2024 also proposed simplifying the TDS refund process, ensuring faster processing of claims and reducing manual intervention.

3. Rationalization of TDS Provisions: Certain TDS and TCS (Tax Collected at Source) provisions have been streamlined for easier compliance, though detailed rules and guidelines for these changes are still pending.

   
   

Recent Updates (FY 2024–25)

TRACES Portal Updates

In February 2025, a new utility (Version 1.6) was rolled out on the TRACES portal for generating Form 16 Part B. This version includes improved functionalities for TDS credit reconciliation and refund claims. Sellers should ensure they are using the latest version of the portal to avoid technical glitches and ensure smooth processing of their Form 16B download and refund claims.

Key Constraints

While the TRACES portal has introduced several updates, sellers may still face challenges in claiming a refund for excess TDS, including:

1. System Errors: Sellers may encounter issues when the system shows TDS credit at a rate lower than what was actually deducted. These errors need to be reported to the Income Tax Department for resolution.

2. PAN-TAN Linkage Issues: In some cases, PAN-TAN linkage errors may occur during the refund claim process, which could delay or prevent the refund from being processed. Sellers should ensure their PAN is correctly linked to the buyer’s TAN for smooth transactions.

   
   

Conclusion

Sellers can indeed claim a refund for any excess TDS deducted under Form 16B, as long as the TDS credit matches the details in Form 26AS. The process of downloading Form 16B from the TRACES portal is simple and does not require a TAN for property transactions under Section 194-IA. With recent updates to the TRACES portal and Budget amendments, the process has become more streamlined, but sellers must remain vigilant about resolving discrepancies in the TDS credit before claiming a refund. Always ensure that the details in Form 26AS and Form 16B match and proceed with the ITR filing for a smooth refund process.

Frequently Asked Question (FAQs)

1. What is Form 16B and when is it issued?

Form 16B is a certificate issued by the buyer of a property under Section 194-IA of the Income Tax Act, which reflects the TDS (Tax Deducted at Source) deducted during the property transaction. The buyer is responsible for deducting TDS on the sale of property (other than agricultural land) and depositing it with the Income Tax Department. After the payment of TDS, Form 16B is automatically generated on the TRACES portal and made available for download by the seller.

Issuance Timeline: Form 16B must be issued within 15 days from the due date of filing Form 26QB, the statement of TDS filed by the buyer. This means that once the buyer has submitted the TDS payment details, Form 16B should be accessible for the seller within 15 days after the due date.

2. How can I claim a refund for excess TDS deducted under Form 16B?

To claim a refund for excess TDS deducted under Form 16B, you must follow these steps:

1. File your Income Tax Return (ITR): Report the capital gains from the property sale transaction in your ITR. Ensure that the TDS details provided in Form 16B are correctly entered into your ITR.

2. Reconcile with Form 26AS: Verify that the TDS credit shown in Form 26AS (which reflects the TDS deducted and deposited by the buyer) matches the amount mentioned in Form 16B. If there is a mismatch, resolve it before filing your ITR.

3. Processing of Refund: Once your ITR is filed and processed by the Income Tax Department, any excess TDS deducted, over and above your tax liability, will be refunded to you.

   
   

3. What happens if the TDS credit in Form 26AS doesn’t match Form 16B?

If the TDS credit in Form 26AS is lower than the amount mentioned in Form 16B, it indicates a discrepancy in the TDS reporting. This could happen due to various reasons, such as:

1. Technical errors: Sometimes, TDS may not reflect correctly in Form 26AS due to system glitches or incorrect filing by the buyer.

2. Incorrect TDS filing: The buyer may have made an error in filing Form 26QB, leading to an incorrect reflection of TDS in Form 26AS.

In such cases, you need to take the following steps:

1. Contact the Buyer: Request the buyer to cross-check the TDS details submitted in Form 26QB and ensure accuracy.

2. Resolve the Issue with the Income Tax Department: If the issue is not resolved, you may need to approach the Income Tax Department for clarification or request a revision in the TDS records.

   
   

4. How do I download Form 16B without a TAN for property transactions?

To download Form 16B without a TAN for property transactions, follow these steps:

1. Buyer’s Responsibility: The buyer must first file Form 26QB, reporting the TDS deducted on the property transaction. This step does not require a TAN.

2. Access TRACES Portal: Once Form 26QB is filed and the TDS is deposited, Form 16B is auto-generated by the Income Tax Department. The seller can then access and download Form 16B from the TRACES portal using their PAN number.

3. Download Form 16B: Sellers can log into the TRACES portal using their PAN credentials and download the form without requiring a TAN.

   
   

5. Can I claim TDS refund for property transactions under Section 194-IA?

Yes, you can claim a TDS refund for property transactions under Section 194-IA if the TDS deducted exceeds your tax liability. The seller must file an Income Tax Return (ITR) and reconcile the TDS amount with the TDS credit reflected in Form 26AS. If any excess TDS is deducted, it will be refunded after processing the ITR.

6. How long does it take to receive the TDS refund after filing ITR?

The timeline for receiving a TDS refund can vary, but generally, it takes around 2 to 3 months from the date of filing the ITR. The refund is processed once the Income Tax Department verifies the details in the ITR and confirms the excess TDS deduction. You can check the status of your refund through the Income Tax e-filing portal.

7. What are the changes introduced in Budget 2024 for TDS refunds?

Budget 2024 introduced several important amendments affecting the TDS process:

1. Six-Year Time Limit for Revising TDS Returns: A six-year time limit has been introduced for revising TDS returns. This means that taxpayers will not be able to request corrections to TDS returns filed prior to FY 2019–20 after March 31, 2025.

2. Simplification of TDS Refund Process: The Budget proposed simplifying the TDS refund process, ensuring quicker processing of claims and reducing the paperwork involved.

3. Rationalization of TDS and TCS Provisions: Several TDS and TCS provisions were streamlined to reduce compliance burdens, although detailed rules for these changes are still being finalized.

   
   

8. How can I check the status of my TDS refund?

You can check the status of your TDS refund by logging into the Income Tax e-filing portal. After you file your ITR, you will be able to track the refund status under the 'Refunds' section. The status will indicate whether the refund is processed, pending, or if there are any issues.

9. Can I claim TDS refund if I’ve not received Form 16B?

Yes, you can claim a TDS refund even if you haven’t received Form 16B, but the process may be delayed. If you haven't received the form from the buyer, you can contact them to get a copy. Form 16B is essential for reconciliation with Form 26AS during the filing of your ITR. If the form is missing, you may face delays in processing your refund.

10. What should I do if there’s an error in the TDS credit shown in Form 26AS?

If there is an error in the TDS credit shown in Form 26AS, take the following steps:

1. Verify the TDS Details: Check the details in Form 16B to confirm the TDS amount deducted.

2. Contact the Buyer: Request the buyer to correct the TDS filing if there’s a discrepancy in the amount deducted or reported in Form 26QB.

3. Approach the Income Tax Department: If the discrepancy persists, you can reach out to the Income Tax Department to get the issue resolved.

   
   

11. Is it possible to amend a TDS return after filing?

Yes, it is possible to amend a TDS return, but only within the specified time limit. The Income Tax Department allows revisions to TDS returns for up to six years, as per the Budget 2024 amendments. After this period, no revisions will be allowed for returns filed before FY 2019–20.

12. How can I avoid TDS discrepancies while filing ITR?

To avoid TDS discrepancies while filing your ITR:

1. Verify Form 16B and Form 26AS: Always ensure that the TDS details in Form 16B match the TDS credit shown in Form 26AS.

2. Check for Errors in Form 26QB: If there are discrepancies, contact the buyer to correct the TDS information filed in Form 26QB.

3. File ITR Timely: File your ITR on time to avoid any issues with the refund process.

By taking these precautions, you can ensure a smooth and accurate filing process.