Form 16C Income Tax

Section 192 to Section 194 of the Income Tax Act would deal with TDS deductions. These sections would state that the payer is needed to deduct TDS from the amount that is paid to the payee. The different types of payments would have different rates of TDS.

When TDS is deducted, the deductor will give the deductee the information of TDS deductions in a specific form. In the same way, Form 16C of the Income Tax Act has the details of the TDS deducted from the salary of the employee.

What is Form 16C?

The Government of our country has inserted a new section - that is, Section 194IB of the Income Tax Act to bring the high rental income groups within the ambit of tax. All of the individuals and HUFs who pay rent Rs. 50,000 or more would have now deducted TDS. Usually, for the deduction of TDS, TAN registration is needed. 

However, under the new provisions, taxpayers could deduct tax by quoting their PAN and then issue Form 16C, which is the newly provided format for the TDS certificate that is to be issued by the rent payer to the rent receiver.

Difference Between Form 16, 16A, 16B, and Form 16C

Here is a detailed table to show you the difference between these forms:

Form 16

Form 16A

Form 16B

Form 16C

It is issued for the employer.

It is issued for the tax deductor.

It is issued to the buyer of the immovable property.

This form is issued for an individual or Hindu Undivided Family paying rent.

It is mandatory to issue if there is no TDS.

It is mandatory to issue when there is no TDS.

It is mandatory to issue if there is no TDS.

It is mandatory to issue if there is no TDS.

Form 16 has details and TDS details.

It has only the TDS details.

The form will contain the details of the TDS.

This form will only have the details of the TDS.

The legal backing of Form 16 is Section 192.

The legal backing for this form is Section 194.

The legal backing for this form is Section 194IA.

The legal backing for this form is Section 194IB.

TDS Payment to the Government

After the TDS has been deducted by an individual or HUF, the same needs to be deposited with the Government; the deposit needs to be made within a period of 30 days from the last date of the month where the TDS was deducted. 

The completion and submission of Form 26QC are also necessary when depositing TDS with the Government. A challan-cum-statement of the TDS deduction made on rent is a Form 26QC.

The RBI, SBI, or any other bank that is permitted to collect TDS on behalf of the Government may be used to deposit TDS with the Government utilizing the electronic method of payment.

Due Date of Form 16C

The deductor is obligated to prepare and give the landlord Form 16C after the TDS has been withheld and lodged with the Government.

As previously mentioned, Form 16C would include information about TDS deducted. After submitting Form 26QC, this form must be delivered to the landlord within 15 days. The deductor would be responsible for any late payment penalties if Form 16C was not provided within the allotted time limit. The fine would be INR 100 per day of delay.

How to Download Form 16C?

Form 16C is available to download on the official portal, and you will have to follow the steps that are mentioned below:

  • Step 1: You will have to visit the official portal.
  • Step 2: Log in to the account with a user ID and a password. After this - you will get a verification code, which has to be provided.
  • Step 3: Once the log-in has been completed, you will be directed to the landing page.
  • Step 4: On this landing page, under the tab of downloads, you can see the option of downloading Form 16C.
  • Step 5: Next, you will have to choose the form type and then choose the assessment year for the form.
  • Step 6: You will have to enter the acknowledgement number, the PAN card number, and the landlord.
  • Step 7: When you choose to proceed, you will see a list of challans that you can download.
  • Step 8: You could also select Form 16C and download it.
  • Step 9: The form will have all the relevant details, such as the name of the deductor, the deductor's father's name, and more. You will have to enter all these details. 
  • Step 10: You will have to request Form 16C.
  • Form 11: Once the request has become available, you will be able to download it.
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