CA Ashish Arora 

CA Ashish Arora

As per Section 194-IA, purchaser of an immovable property (other than rural agricultural land) worth Rs 50 lakh or more is required to pay withholding tax at the rate of 1% from the consideration payable to a resident transferor. Form 26QB is an internet based PAN challan( minor head 800) containing details of buyer, Seller, property being sold, sale consideration, tax deposit details etc. Various instances are seen were some or other attribute of challan is wrongly mentioned and credit of TDS deducted is not reflected in Form 26AS. Earlier online correction facility is not available hence to correct any mistake in Form 26QB tax payer needs to apply to assessing officer. But now online correction facility of Form 26QB is available on TRACES. This article will cover all the important points and procedure of online correction of Form 26QB

Important Information for “26QB Correction”:

1. Only Buyers registered on TRACES can submit request for “26QB correction” under “Statements/Forms ” Tab.

2. Fields of 26QB in which Correction is allowed as follows :

  • PAN of Buyer
  • PAN of Seller
  • Financial Year
  • Amount Paid/Credited
  • Date of Payment/Credit
  • Date of Deduction
  • Property Details –(Complete Address of the Property)
  • Total Value of Consideration (Property Value)

3. If Buyer files 26QB Correction and “Seller” is known , correction can be submitted through E-Verified (Internet Banking) /AO Approval/DSC (If Buyers DSC is registered) for updating PAN details (Buyer /Seller).

4. If Digital Signature is not registered and Buyer or Seller is non Traceable , the correction request can be submitted through AO Approval option for updating PAN details (Buyer/ Seller).

5. If Digital Signature is not registered, Buyer or Seller is known , the correction request can be submitted through E-Verified (Internet Banking) /AO Approval option for updating PAN details (Buyer Seller).

6. If PAN of Seller requires to be updated, the correction request will require “Previous Seller’s” approval.

7. If PAN of Buyer requires to be updated, the correction request will require Seller’s” and intended (New) Buyer approval.

8. If both PAN of Seller and Buyer require to be updated, the correction request will require approval from Previous Seller and intended (New) Buyer.

9. If Amount Paid/Credited is updated, the correction submitted will require Seller’s Approval.

10. Jurisdictional AO will be decided on the bases of Buyer’s PAN’s (PAN submitting the correction) Jurisdiction.

11. If user is doing 26QB correction for the First Time or Second Time in Seller’s PAN +Amount Paid /Credit, Correction request will be directly submitted for A.O. Approval.

12. If user is doing 26QB correction for the First Time or Second Time in Buyer’s PAN + Seller’s PAN + Amount Paid/ Credit request will be directly submitted for A.O. approval.

Brief steps for “26QB Correction”

Step 1: Login to TRACES website with your “User ID”, “Password” and the “Verification Code”. Landing page will be displayed on Screen.

Step 2: Select option “ Request for Correction” under “Statements/ Forms” tab to initiate correction request. 26QB checklist will display on next screen. After clicking on “Proceed” Pop-Up window will display (If DSC is not registered).

Step 3: Enter relevant “Assessment Year”, “Acknowledgement Number” and “PAN of Seller” according to filed Form 26QB, then Click on “File Correction” to submit request for correction. Request number will generate after submission of Correction Request. User can check Requested Status in “Track Correction Request” option under “Statements/ Forms” tab.

Step 4: Go to “ Track Correction Request” option under “Statements/ Forms” tab and initiate correction once the status is “Available”. Click on “Available” status to continue.

Step 5: Mention CIN details as per challan paid against 26QB then click on “Proceed” .

Step 6: User can select on “Financial Year and Tax applicable” option to change F.Y in 26QB. After clicking on “Edit” button. Message will pop up on the screen. Click on “Save” to save updated details then click on “Submit Correction Statement”(Select tab accordingly in which user want to do edit details).

Step 7: Screen will display to “Confirm details” after Submission of Correction Statement (Updated details will be highlighted in Yellow Colour).

Step 8: Profile details will be populated as updated on Traces. Click on “Submit Request” to Submit Correction Request.

Step 9: After submission of Correction Request if DSC is not registered user gets the option to validate correction through EVerified (Internet Banking) or AO Approval OR if DSC is registered user gets the option to validate correction through E-Verified (Internet Banking), AO Approval OR DSC.

Note:

1. After submitting the Correction, a Correction ID will be generated through which status of correction can be tracked.

2. If DSC is not registered, user has to submit below mentioned documents to Jurisdictional AO for verification :

  • Furnish hard copy of Acknowledgement of form 26QB correction along with Identity Proof.
  • PAN Card.
  • Documents related to Transfer of Property.
  • Proofs of payment made through Challan for 26QB.

OR

With “E-Verified (Internet Banking) Service” user can submit 26QB Correction statement without approval from Assessing Officer and without using DSC. (E-Verified Service option is not available for NRI Taxpayers ).

Note: The TRACES website has provide Pictorial guide for “26QB Correction” for ready reference of users. Link is as follows – https://contents.tdscpc.gov.in/en/traces26qb-new-etutorial.html

Also Read- TDS on Purchase of Immovable Property – FAQ , Payment Procedure

(Republished with Amendments by Team Taxguru)

More Under Income Tax

41 Comments

  1. SHA N SHA says:

    I HAVE MADE PAYMENT FOR TDS ON SALE OF PROPERTY ON ADVANCE RECEIVED BUT SUBSEQUENTLY TRANSACTION WAS CANCLE AND NOW NO PURCHASE MADE BY ME, CAN I GATE TDS AMOUNT BACK FROM DEPARTMENT ?

  2. nidhi says:

    Sir/Mam,
    On 14th of May i have submitted TDS on property worth 71,00,000 as per old rate of 1% amounting to 71,000.
    on 13th of May the rates were revised to 0.75% which i was not aware of.
    Now the form 16B has been generated with the 0.75% rate.
    Please let me know the procedure to get back the excess amount of 17,750

  3. Ronney D'silva says:

    I made an online payment towards form 26QB but instead of paying the Fees, I paid the Income Tax by mistake. How do I get this corrected

  4. Sandhya says:

    Buyer of the property has made the TDS payment and is reflecting in TIN – NSDL but not in TRACES website for the Seller.
    Buyer has made 1 % TDS pymt under 194LA – Payment of Compensation on acquisition of property as nature of payment but has mentioned AY incorrect.

    How is the correction to be made here?
    Not sure if buyer has done online form 26QB.
    How can this be reflected in Seller TRACES?

  5. PRASHANT DIXIT says:

    Sir,
    IF ANYBODY PAYS LESS AMOUNT WHILE DOING THE PAYMENT THROUGH INTERNET BANKING MODE, HOW THEY CAN PAY THE REMAING AMOUNT.
    i.e., THE AMOUNY IS 11,25,301.05, BASED ON THAT THE 1% TDS IS 11,254 BUT YOU ENDED UP PAYING 11,253.

    HOW CAN WE RECTIFY THIS.

    THANKS AND REGARDS

  6. SASIKUMAR S says:

    While making the TDS on Sale of property through online payment Form 26QB we have made the mistakes instead of buyer column filled in the seller column vice versa, pl advice me what is the procedure to rectify the TDS

  7. deep shah says:

    I deducted tds of the nri for bought of property. And I sibmitted the 26QB instead of 27Q . Now, What i required to do so that properly submitted .

  8. Sudheendra says:

    I made a mistake while making the TDS payment on sale of property. I had paid the payment using the old paid Form 26QB acknowledgement instead of the new one. How to correct and settle the same?

      1. Sandesh R says:

        Hi

        Did you made any correction. If Yes, then how?

        I just made same mistake by making payment with old acknowledgement number.

        Please guide.

    1. Rashmi B says:

      TDS of Rs.2968.35 has been deducted and remitted on 13-6-2020. Afte 2-3 days Form 26QB has generated. After one week I am trying to download the the Form 16B till today but not able to download. In remarks (red line) is showing that no data is available. I have also verified in Tax Credit Form 26AS. Here also remittance amount is not appeared in -” Part F”. Please guide me how to solve this.

      1. Rashmi B says:

        Sir, TDS remitted on sale of property on 13-6-2020. Form 26QB has been obtained. But Form 16B is not generated and the information is not found in Tax Credit Form 26AS Part F so far. Please Guide me.

  9. rajesh govindan says:

    Karnataka house board allotted a site for me and paid full amount without 1% TDS deduction as per their allotment letter. Full amount paid to KHB on 17th June 2015. KHB registered the property in my name on 31st December 2015. I have paid 1% TDS on 26th December as our sale deed was executed by KHB on 26th December,2015 by Executive Engineer. While filing TDS I mentioned date of payment as 17th June. Got the Refund of 1% TDS from KHB after the property registration. Today I received a notice for defaults u/s 200A section to pay the penalty. Is it allowed to change date of payment as 26th December instead of 17th June? This is case for all allocate for KHB sites. Please advice

  10. rajendra mundada says:

    By mistake – buyer is mentioned as seller and seller is mentioned as buyer while making payment of TDS for purchase of property. How the same to be correctd

    1. TOUFIK says:

      By mistake – buyer is mentioned as seller and seller is mentioned as buyer while alredy making the payment of TDS for purchase of property. How the same to be correctd ,

  11. Harsh Jasrotia says:

    Hi Ashish,
    a. I have wrongly entered interest amount of Rs. 250 in penalty section of form 26qb? Is it possible to rectify the same?
    b. Also the tds to be paid is for an installment paid in Nov 2014. Would I still entitled for credit from builder as I would be submitting the certificate in May 2016?

  12. Sumit Kumar Gogawat says:

    Sir, We have received notice for late payment of interest. we already paid this demand but want to know how can we rectify or cancel the demand after making payment. Please help

  13. Hetal Maru says:

    I have made a payment to a non resident for purchase of immovable property. The TDS has been rightly deducted and at the time of making payment for TDS, the section code was mentioned as 194IA instead of Section 195.

    How do I rectify the same.

  14. Pratiksha says:

    hello, I have submitted the request for correction in sept 2015. But it is still not reflecting in the sellers records.. how long does it take for the assessment officer to correct it?

  15. Shashank Agarwal says:

    Hi,

    I have entered wrong financial year and hence assessment year for 2 of my and 2 of my wife’s 26QB forms.

    How can i get it rectified? Is the affidavit from seller mandatory? Please help- 9619209040/shashankagarwal@outlook.com

  16. GR says:

    Can 26QB be used for payments on purchase of property for NRI also (u/s 195 not u/s 194IA), or should 281 be used for that in which case TAN has to be obtained even if buyer is an individual.

    Thanks.

  17. ketan says:

    Sir,
    If anybody bymistakely made part payment under TAX and Part in Interest before 1 year then what to do? Even TDS Officer is refusing to make correction in system such option is non available…

    1. Ashish Arora says:

      Directorate of income tax (systems) allow correction in the following challan attributes only:
      a) Buyer PAN
      b) Seller PAN
      c) Assessment Year
      d) Major Head[ i.e. 20(corporate) and 21(Non-corporate)]

      1. Ashish Arora says:

        Ketan i found one tutorial on traces website for correction in form 16B by buyer. By following the instruction of tutorial you can make correction in tax and interest amount.
        follow below link:

        contents.tdscpc.gov.in/en/download-request-form16b.html

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