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Is collecting TDS certificate mandatory?

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KALPESH JOSHI

190 Points Posted on 19 March 2022

I have sold one land and the buyer has deducted TDS worth rs 30k on it. It is already showing in my 26AS.

I haven't collected form 16B from him, Is it really necessary to collect 16b if the amount is already showing on my 26as? will it create any problem while filing ITR? or to get an excess TDS paid refund? please let me know.

Replies (24)

Quick Summary

This discussion explores whether collecting a TDS certificate (Form 16B) is mandatory after a property sale, even if the TDS amount is reflected in your 26AS. While some argue it's the buyer's responsibility and not strictly essential if 26AS is updated, others strongly advise collecting it. The certificate can be crucial for future adjustments, preventing IT notices, and potentially aiding in TDS refunds, as 26AS might not always reflect future revisions or reversals made by the buyer.

Eswar Reddy S

CFO- at NHTF

15022 Points Posted on 19 March 2022

Yes.It is better to collect form 16B from buyer.

It's the buyer responsibility to issue the Tds certificate or Form 16B

KALPESH JOSHI

190 Points Posted on 19 March 2022

Originally posted by : Eswar Reddy S
	Yes.It is better to collect form 16B from buyer.It's the buyer responsibility to issue the Tds certificate or Form 16B

If I don't get then? I won't able to claim tds refund ?

Eswar Reddy S

CFO- at NHTF

15022 Points Posted on 19 March 2022

Tds can be claimed based on the 26AS but form 16B should be there for future purposes..

KALPESH JOSHI

190 Points Posted on 19 March 2022

Originally posted by : Eswar Reddy S
	Tds can be claimed based on the 26AS but form 16B should be there for future purposes..

Noted

Eswar Reddy S

CFO- at NHTF

15022 Points Posted on 19 March 2022

There is a possibility of Tds reversal . So Form 16B can save you from IT notices

KALPESH JOSHI

190 Points Posted on 19 March 2022

Originally posted by : Eswar Reddy S
	There is a possibility of Tds reversal . So Form 16B can save you from IT notices

In short i can claim tds refund but in case of notice 16b or 26as should be handy? is that you mean>?

Eswar Reddy S

CFO- at NHTF

15022 Points Posted on 19 March 2022

No..If the buyer reverse the after Tds claim then you get notices .So collect form 16B

KALPESH JOSHI

190 Points Posted on 19 March 2022

Originally posted by : Eswar Reddy S
	No..If the buyer reverse the after Tds claim then you get notices .So collect form 16B

Can you please tell how buyer can reverse TDS ? because on property deals 1% TDS deduction is mandatory and once it is paid and showing on seller's 26as, buyer is able to get it reverse also? is it possible ?

Eswar Reddy S

CFO- at NHTF

15022 Points Posted on 19 March 2022

Tds filings are subjected to Correction..It's very much possible and in the past many people got the notices as well

CA Surya Sekar

CFO

486 Points Posted on 19 March 2022

It's mandatory to collect form 16B

KALPESH JOSHI

190 Points Posted on 19 March 2022

Originally posted by : CA Surya Sekar
	It's mandatory to collect form 16B

Buyer is not giving. :(

CA Raj Doshi

Practising CA

5649 Points Posted on 20 March 2022

Revision in tds on property requires consent of seller by way of OTP/DSC approval.So don't worry, your TDS will not go. Contact buyer and share procedure for registration and issuance from traces portal. The tds certificate document is an important one. If he still does not agree, you might have to approach him legally quoting the relevant pages of the agreement which was signed and buyer is obligated to issue the certificate.