26QB Correction for Excess TDS on property purchased

Correction & Refund for Excess TDS on Property

• Property Value: ₹2,09,18,311

• TDS Payable (1%): ₹2,09,183

• TDS Paid: ₹2,69,841 (Excess: ₹60,658)

• Mistake: Only ₹20,918 used in 16B from ₹2,09,179 challan.

✔ What You Can Do:

1. Correct 26QB on TRACES:

   • Login as buyer → Request 26QB correction.

   • Update TDS amount claimed in Form 16B to fully utilize the ₹2,09,183.

   • Link additional challans only if needed.

2. Claim Refund of Excess ₹60,658:

   • After correction, apply refund via TIN NSDL portal

   • If online not available, file manual refund with AO (include agreement, challans, 16Bs, correction proof).

For detailed, personalized advice, consider a phone consultancy. Hope you find the information helpful. You are free to contact me for further discussion. If you could spare two minutes of your time to write a review, it would be greatly appreciated and bring immense happiness to read it. Thank you. Shubham Goyal.

 

​Dealing with excess Tax Deducted at Source (TDS) payments in property transactions requires precise corrections and adherence to the procedures outlined by the Income Tax Department. Here's a step-by-step guide to address your situation:​

1. Correcting the TDS Statements:

• Form 26QB Correction: Since you've identified discrepancies in the TDS amounts reported, you should initiate corrections for each respective Form 26QB filed. This process involves:​balakrishnaandco.com+4Taxfull+4SAG Infotech Official Blog+4

  • Accessing TRACES Portal: Log in to the TRACES website using your credentials.​

  • Navigating to Correction Requests: Go to 'Statements / Forms' > 'Request for Correction' and select the relevant Form 26QB for correction.​

  • Making Necessary Amendments: Update the details such as the TDS amounts to reflect the accurate figures. Ensure that the corrected amounts align with the actual payments made.​

  • Submission and Approval: After making the corrections, submit the request. Depending on the nature of the correction, it may require approval from the Assessing Officer (AO).​

  For detailed guidance on correcting Form 26QB, refer to this resource: ​

2. Claiming a Refund for the Excess TDS Paid:

• Form 26B Submission: To claim a refund of the excess TDS paid, you need to file Form 26B through the TRACES portal:Initiate Refund Request: After logging into TRACES, navigate to 'Statements / Forms' > 'Request for Refund'.​

  • Provide Challan Details: Enter the details of the challans where excess TDS was paid.​

  • Bank Account Information: Ensure that your bank account details are accurate for the refund process.​

  • Submission and Verification: Submit the refund request. You may need to verify the request using a Digital Signature Certificate (DSC).​

   

3. Addressing the Assessing Officer's (AO) Concerns:

Given that your initial refund application was rejected due to the project's incomplete status and pending TDS liabilities, it's crucial to:​

• Consult with the AO: Engage in a dialogue with the AO to clarify the current status of the project and present evidence of the TDS payments made.​

• Provide Supporting Documentation: Submit all relevant documents, including corrected Form 26QB acknowledgments and proof of TDS payments, to substantiate your claim.

4. Future Preventative Measures:

• Accurate TDS Deductions: Ensure that TDS is deducted accurately at the time of each payment to prevent overpayment or underpayment.

• Timely Corrections: Address any discrepancies immediately to avoid complications in the future.​

 If you encounter challenges during this process, feel free to connect with us.

Thanks
Damini

- Total value of the property is Rs. 2,09,18,311

- Date of Agreement - Feb.2024

- Total TDS paid - Rs.2,09,179+20,918+39,744 = Rs. 2,69,841

- Remaining instalments to be payable - Rs. 1,27,59,900

In case of an under-constructed property, TDS is payable at the time of payment of each installments. By mistake you paid the entire TDS of Rs.2,09,179 initially though it was payable in the installments. File correction online for each installments and claim the refund of balance after payment of whole amount of the flat.

First file online correction and thereafter produce the documents before the jurisdictional TDS AO. Documents required would be online correction application, copy of agreement, copy of Form 26QB filed, PAN of seller, Indemnity bond, copy of cancelled cheque (in case of refund) etc, 

TDS is not deductible on the GST amount

For detailed discussion you may opt for phone consultation