Form 16B is a tax document issued by a buyer to a seller when Tax Deducted at Source (TDS) is deducted on the sale of an immovable property under Section 194-IA of the Income Tax Act, 1961. This form serves as proof that the buyer has deducted and deposited 1% TDS on property transactions exceeding ₹50 lakh with the Income Tax Department.

For businesses in manufacturing, retail, logistics, and facility management, ensuring compliance with TDS regulations is crucial for property-related transactions. Companies managing contract workers, gig employees, and blue-collar workforce must stay updated with tax documentation requirements to avoid legal penalties and ensure smooth financial operations. Employers and HR teams use payroll automation and tax compliance tools to track TDS deductions, generate Form 16B, and simplify financial reporting.