Form 16B
Under Section 203 of the Income Tax Act of 1961, a certificate of deduction of tax at source is referred to as Form 16B. It is a record given to the merchant of property by the purchaser of the property after the derivation of expense at source (TDS) on the exchange. The TDS deduction for the sale of property, which can be land, a building, or both, is reported on Form 16B. Within 15 days of the TDS return’s due date, the buyer issues the seller with the certificate. It is a significant archive for the dealer to guarantee credit for the TDS deducted on the offer of property.
The Structure 16B contains subtleties of the exchange, for example, the name of the purchaser and vender, how much thought paid for the property, and how much TDS deducted. The declaration likewise contains the special TDS authentication number, which is given by the Annual Duty Office. The seller can file their income tax returns and claim credit for the TDS they deducted using the information in Form 16B.
To ensure that there are no errors, the seller must compare the information in the Form 16B to the information in the actual transaction. Before filing their income tax returns, the seller should notify the buyer of any discrepancies and make the necessary corrections. The seller must keep the Form 16B safe for future reference because it is an essential document for claiming credit for the TDS deducted from the sale of the property.
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