{"id":7709,"date":"2025-07-11T12:15:31","date_gmt":"2025-07-11T12:15:31","guid":{"rendered":"https:\/\/lemonn.co.in\/blog\/?post_type=glossary&#038;p=7709"},"modified":"2025-07-11T12:15:34","modified_gmt":"2025-07-11T12:15:34","slug":"form-16b-tds-certificate-for-sale-of-property","status":"publish","type":"glossary","link":"https:\/\/lemonn.co.in\/blog\/glossary\/form-16b-tds-certificate-for-sale-of-property\/","title":{"rendered":"Form 16B &#8211; TDS Certificate for Sale of Property"},"content":{"rendered":"<p><strong><a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/form-16\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>Form 16<\/a>B<\/strong> is a certificate that proves <strong><a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/tds\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>TDS<\/a> (<a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/tax\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>Tax<\/a> Deducted at Source)<\/strong> has been paid to the government <strong>when buying a property<\/strong>.<\/p>\n\n\n\n<h2 id=\"simple-definition\" class=\"wp-block-heading\">Simple Definition:<\/h2>\n\n\n\n<p>When you <strong>buy a property<\/strong> in India worth more than &#x20B9;50 lakhs, the law says <strong>you must deduct 1% TDS<\/strong> from the sale amount before paying the seller. You then deposit that 1% with the <strong><a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/income-tax\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">Income Tax<\/a> Department<\/strong>.<\/p>\n\n\n\n<p><strong>Form 16B<\/strong> is the <strong>proof<\/strong> that this tax was deducted and deposited. It is issued by the <strong>buyer to the seller<\/strong>.<\/p>\n\n\n\n<h2 id=\"what-is-form-16b-used-for\" class=\"wp-block-heading\">What is Form 16B Used For?<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>To <strong>prove the buyer deducted and paid<\/strong> 1% TDS to the government.<\/li>\n\n\n\n<li>To help the <strong>seller claim credit<\/strong> for the TDS while filing income tax.<\/li>\n\n\n\n<li>It acts like a <strong>receipt of tax<\/strong> for the property transaction.<\/li>\n<\/ul>\n\n\n\n<h2 id=\"example\" class=\"wp-block-heading\">Example:<\/h2>\n\n\n\n<p>Let&#x2019;s say:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>You buy a house in Delhi for &#x20B9;75 lakhs.<\/li>\n\n\n\n<li>You must deduct <strong>1% TDS = &#x20B9;75,000<\/strong> and deposit it to the government.<\/li>\n\n\n\n<li>After doing that, you generate <strong>Form 16B<\/strong> from the TRACES website.<\/li>\n\n\n\n<li>You give Form 16B to the <strong>seller<\/strong> as a tax certificate.<\/li>\n<\/ul>\n\n\n\n<h2 id=\"key-features-of-form-16b\" class=\"wp-block-heading\">Key Features of Form 16B<\/h2>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>Issued by Buyer<\/strong> &#x2013; Not the seller.<\/li>\n\n\n\n<li><strong>Mandatory for Property Deals Above &#x20B9;50 Lakhs<\/strong>.<\/li>\n\n\n\n<li><strong>TDS Rate is 1%<\/strong> of the property value.<\/li>\n\n\n\n<li><strong>Form is Generated from TRACES Portal<\/strong> (after filing <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/form-26q\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">Form 26Q<\/a>B).<\/li>\n\n\n\n<li><strong>Seller Can Use It While Filing ITR<\/strong> to show TDS credit.<\/li>\n<\/ol>\n\n\n\n<h2 id=\"why-it-matters\" class=\"wp-block-heading\">Why It Matters<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>It keeps your property deal legal and tax-compliant.<\/li>\n\n\n\n<li>It helps the seller avoid tax notices and claim TDS credit.<\/li>\n\n\n\n<li>Without Form 16B, the TDS might not reflect in the seller&#x2019;s tax records.<\/li>\n<\/ul>\n\n\n\n<h2 id=\"easy-way-to-remember\" class=\"wp-block-heading\">Easy Way to Remember<\/h2>\n\n\n\n<p><strong>Form 16B = Buyer&#x2019;s TDS receipt for property sale.<\/strong> It proves tax was deducted and paid properly.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Form 16B is a certificate that proves TDS (Tax Deducted at Source) has been paid to the government when buying a property. Simple Definition: When you buy a property in India worth more than &#x20B9;50 lakhs, the law says you must deduct 1% TDS from the sale amount before paying the seller. You then deposit [&#x2026;]<\/p>\n","protected":false},"author":9,"featured_media":0,"menu_order":0,"template":"","meta":{"footnotes":""},"class_list":["post-7709","glossary","type-glossary","status-publish","hentry"],"blocksy_meta":[],"_links":{"self":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary\/7709","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary"}],"about":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/types\/glossary"}],"author":[{"embeddable":true,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/users\/9"}],"version-history":[{"count":1,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary\/7709\/revisions"}],"predecessor-version":[{"id":7710,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary\/7709\/revisions\/7710"}],"wp:attachment":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/media?parent=7709"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}