How to Download Form 16B & Understand Section 194H TDS Implications (2025 Guide)
- Rashmita Choudhary
- Jul 22
- 6 min read
Understanding Your Query: Form 16B vs. Section 194H
This guide helps clarify your questions about Form 16B download and the implications of Section 194H of the Income Tax Act, which govern two different TDS scenarios. While Form 16B relates to TDS on property sale transactions under Section 194-IA, Section 194H covers TDS on commission or brokerage payments. Correct handling of these TDS provisions is essential for buyers, sellers, and payers of commission to avoid penalties and ensure smooth compliance. If tax regulations seem complex, TaxBuddy offers expert help to simplify these processes.
Table of Content
What is Form 16B? TDS Certificate for Property Sale - Section 194-IA
Form 16B is the TDS certificate issued by the buyer when deducting tax on property sales above Rs. 50 lakh, as mandated by Section 194-IA. It proves that the buyer has deducted 1% TDS and deposited it with the government. Sellers use this form to claim TDS credit in their Income Tax Return (ITR).
Feature | Form 16 | Form 16A | Form 16B |
Issued for | Salary Income | Non-salary income (TDS) | TDS on Property Sale (194-IA) |
Issued by | Employer | Deductor (Payer) | Buyer of Property |
Relevant Section | Income Tax Rules | Various TDS Sections | Section 194-IA |
Remember, Form 16B is distinct from Form 16 (salary) and Form 16A (other income).
Prerequisite: Understanding Form 26QB
Before downloading Form 16B, the buyer must deposit TDS via Form 26QB, which serves as a challan and statement capturing details like buyer & seller PANs, property details, and TDS amount. This payment must be made within 30 days from the month-end in which TDS was deducted.
Keep your Form 26QB acknowledgment number safe, as it is needed for downloading Form 16B.
Step-by-Step: How to Download Form 16B from TRACES
Register/Login on theTRACES portal using PAN and password.
Navigate to Downloads > Form 16B (For Buyer).
Enter Assessment Year, Form 26QB acknowledgment number, and Seller PAN.
Submit the request and note the generated request number.
Check status in Requested Downloads; once available, download Form 16B PDF.
The PDF is password-protected; usually, the password is the buyer's DOB in DDMMYYYY format.
Form 16B is generally available 10-15 days after TDS payment.
Key Details Found in Form 16B
Buyer & seller name, address, PAN
Property address
Sale consideration amount
TDS deducted & deposited amount
Dates of TDS deduction & deposit
Form 26QB acknowledgment number
Assessment Year
This information is vital for sellers to claim TDS credit and avoid tax disputes.
Due Date for Issuing Form 16B
Form 16B must be issued to the seller within 15 days from the due date of filing Form 26QB (which is 30 days from the month-end of TDS deduction). Hence, effectively, the buyer has around 45 days to issue Form 16B. Delay may attract penalties of Rs. 100 per day under Section 272A(2)(g).
Understanding Section 194H: TDS on Commission & Brokerage
Section 194H requires TDS deduction on commission or brokerage payments made to residents. It covers payments for services related to buying/selling goods, assets, or other transactions but excludes insurance commission (covered under Section 194D).
Who must deduct TDS under 194H?
Any person other than Individuals/HUFs must deduct TDS.
Individuals/HUFs must deduct TDS only if their business turnover exceeds limits under Section 44AB (tax audit thresholds) in the previous year.
Current TDS Rate and Threshold Limit under Section 194H (FY 2024-25 / AY 2025-26)
Aspect | Old Provision | New Provision (Budget 2024/2025) | Effective Date |
TDS Rate | 5% | 2% | October 1, 2024 |
Threshold | ₹15,000 per FY | ₹20,000 per FY | April 1, 2025 |
PAN Non-Furnishing | 20% | 20% | Ongoing |
If total commission or brokerage exceeds ₹20,000 in a financial year, TDS at 2% must be deducted from the entire amount. Higher 20% TDS applies if PAN is not provided.
Conclusion
Form 16B is a TDS certificate for property sale under Section 194-IA, downloadable by the buyer via TRACES after filing Form 26QB.
Buyers must adhere to TDS deposit and Form 16B issuance deadlines to avoid penalties.
Section 194H covers TDS on commission and brokerage payments, with updated rates and thresholds as of FY 2024-25.
Correct classification and compliance in these areas prevent penalties and help maintain transparent financial records.
For detailed help or tax filing assistance, you can always rely onTaxBuddy’s expert support.
Frequently Asked Question (FAQ)
What is the exact process for downloading Form 16B after paying TDS on property sale?
After paying TDS via Form 26QB, the buyer must log into the TRACES portal, navigate to the 'Downloads' section, select 'Form 16B (For Buyer),' enter the Assessment Year, Form 26QB acknowledgment number, and seller’s PAN, then submit the request. Once approved (usually within 10-15 days), Form 16B can be downloaded as a password-protected PDF.
How can I retrieve Form 16B if I lost the Form 26QB acknowledgment number?
Without the acknowledgment number, it becomes difficult to download Form 16B directly. Buyers should check emails or SMS for the acknowledgment or re-check their payment receipts on the Income Tax portal. Alternatively, contacting the TDS deductor or tax consultant who handled the payment may help recover the number.
Can a buyer download Form 16B before making the TDS payment via Form 26QB?
No, Form 16B can only be generated and downloaded after the successful payment of TDS through Form 26QB. The system verifies the TDS deposit before making Form 16B available.
What happens if the buyer delays issuing Form 16B to the seller? Are there penalties?
The buyer must issue Form 16B within 15 days from the due date of filing Form 26QB (usually within 45 days from the month of deduction). Delays can lead to penalties under Section 272A(2)(g), which can be Rs. 100 per day of default.
How does Form 16B help the seller claim TDS credit in their Income Tax Return?
Form 16B acts as official proof of TDS deducted and deposited by the buyer. Sellers use this form to verify and claim the TDS credit against their PAN in the Income Tax Return, avoiding mismatches and ensuring proper tax credit.
Is the password to open Form 16B always the buyer’s date of birth, or can it differ?
Typically, the password is the buyer’s date of birth in DDMMYYYY format. However, variations might occur based on updates by the Income Tax Department, so verifying the exact format from the TRACES portal instructions is advised.
How is TDS on commission under Section 194H different from other TDS sections on professional fees?
Section 194H specifically applies to commission and brokerage payments at a 2% rate, distinct from Section 194J, which covers professional fees like legal or technical services often at 10%. Section 194H is narrower, focusing on commission-type payments.
What is the impact of the new 2% TDS rate on commission payments under Section 194H from October 2024?
The reduction from 5% to 2% lowers the immediate tax deduction burden on commission payments, improving cash flow for recipients while maintaining compliance. Buyers/payers must update systems to deduct TDS at the new lower rate.
If a commission payment is below ₹20,000 in a year, is TDS mandatory under Section 194H?
No, TDS under Section 194H is required only if the total commission or brokerage payments exceed ₹20,000 in a financial year (effective April 1, 2025). Below this threshold, no TDS deduction is necessary.
Can individuals and HUFs avoid deducting TDS under Section 194H if their turnover is below audit limits?
Yes, individuals and Hindu Undivided Families whose total sales, gross receipts, or turnover is below the audit threshold under Section 44AB are exempt from deducting TDS under Section 194H.
What documents should a payee maintain to prove TDS deducted under Section 194H?
The payee should keep Form 16A (TDS certificate), TDS payment challans, bank statements showing credited amounts after TDS, and acknowledgment receipts to substantiate the TDS deducted and claimed.
How does non-furnishing of PAN affect TDS rates on property sales and commission payments?
If the deductee (seller or commission recipient) does not provide a valid PAN, TDS must be deducted at the higher rate of 20% under both Sections 194-IA (property) and 194H (commission), increasing the tax burden.
Are GST amounts included while calculating TDS for Form 16B and Section 194H payments?
No, TDS is generally deducted on the amount excluding GST if the GST is separately shown in the invoice. Only the taxable value (exclusive of GST) forms the basis for TDS deduction.
What are the common mistakes buyers make while filing Form 26QB and downloading Form 16B?
Common errors include incorrect PAN entry, mismatching property details, delayed payment of TDS, not retaining acknowledgment numbers, and failure to issue Form 16B within due dates, all causing compliance issues.
Can I correct or update Form 16B after downloading if there was a mistake in the TDS details?
No direct correction in Form 16B is allowed by the buyer once issued. If there are errors, the buyer must correct details in Form 26QB by filing a correction statement on the Income Tax portal, and then request a fresh Form 16B after correction.
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