26QB Challan Correction is one of the most frequently asked queries on my blog. There is a lot of confusion related to 26QB Challan Correction process. In fact, the readers who called helpline of Income Tax department could not get a proper response in this regard. A property buyer is left in a lurch. Before you go through this post, i suggest you to check my post How to deduct TDS u/s 194IA?. Reason being, it will help to understand the background. Also, it is always advisable to file the correct details in challan. You can collect the information beforehand. The form 26QB challan is not that complicated. You can file on your own without any help. Also, it is advisable that form 26QB challan should be filed by a buyer. Normally in case of under construction property, builder file form 26QB challan on behalf of a buyer.
In my post, TDS Filing – 7 Common Mistakes i shared some of the common mistakes. Though these errors were not specific to TDS u/s 194IA were general in nature. Still, you can go through the same to avoid these mistakes. To err is human if there is an error while filing then 26QB Challan Correction is required. Due to lack of information in the public domain, there are a lot of misconceptions related to 26QB Challan Correction. The objective of this post is to share most imp points to clarify doubts of readers.
26QB Challan Correction – 7 Imp Points
1. Banks Branches cannot do 26QB Challan Correction: A form 26QB is an internet challan. Though bank branches have a mechanism called RT 18 to correct the challans. Unfortunately, being an internet challan 26QB Challan Correction is not possible through existing RT 18 mechanism available with bank branches. For the convenience of a buyer, an income tax department may initiate changes & allow banks to correct the challan. It will simplify the process.
2. Assessing Officers are not authorized for 26QB Challan Correction: It is quite strange that AO or Assessing Officers are not allowed to correct the challan. It delays the entire process of 26QB Challan Correction.
3. Correction only in select Challan fields: A buyer cannot correct all the fields of Form 26QB challan. Correction is possible only in following fields:
(i) Buyer PAN
(ii) Seller PAN
(iii) Assessment Year
(iv) Major Head i.e. 0020 – Income Tax on Companies (Corporation Tax) and 0021 – Income Tax (Other than Companies)
4. Challan fields that cannot be corrected: Correction is not possible for following relevant fields
(i) Total Value of Consideration (Property Value)
(ii) Minor head i.e. Type of Payment – 800 (TDS on Sale of Property)
(iii) Address
(iv) Property Details
(v) Payment Details
(vi) TDS or Tax Deposit Details including penalty i.e. interest and Fee
These are critical fields. Therefore, it is important to fill payment and TDS details correctly. In the case of penalty and Fee, it should be calculated as per the provisions of IT rules to avoid 26QB Challan Correction. The details mentioned above once entered cannot be corrected.
5. The Process of 26QB Challan Correction: For 26QB Challan Correction, a buyer has to submit the written application to the PAN Assessing Officer as per the jurisdiction of the buyer’s PAN. To know your PAN Assessing Office, please click on the following link
https://incometaxindiaefiling.gov.in/e-Filing/Services/KnowYourJurisdictionLink.html
The two important points to note
(a) Only a buyer can submit application for 26QB Challan Correction
(b) It is not necessary that your PAN Assessing Officer is in the same city where you stay. PAN Assessing Officer is usually in a city where you applied for PAN. Sometimes, based on last IT return filed, the jurisdiction of PAN Assessing Officer is changed automatically. I will take my case, i applied for PAN in City A and currently staying in City B for last six years. I am filing online returns with the address of City B. Still my PAN Assessing Officer is linked to City A. Therefore, in this case if i have to submit an application for 26QB Challan Correction then i need to travel to City A. Also, the property can be located in any city. Sometimes buyer thinks that application for correction can be submitted in a town where the property is located.
6. NOC from seller: It is quite tricky. A buyer need NOC from the seller on an affidavit in original. This original NOC should be attached to the application for 26QB Challan Correction.
7. Correction Status: Now the big question is how the buyer will know whether the correction is done or not. The answer is if your correction is approved by IT department then it will be reflected in the Form 26AS of the seller. In short, the buyer will not come to know about the same. Therefore, a buyer may request the seller to check his/her Form 26AS for corrections. I was wondering how a buyer or seller will know if the application for 26QB Challan Correction is rejected.
Words of Wisdom: It’s been two and a half year now since the introduction of TDS u/s 194IA. The process of filing is quite smooth and easy for a buyer. In the case of 26QB Challan Correction, the buyer finds tough to get it corrected. Personally, i am not convinced with the 26QB Challan Correction process. In my opinion, the complete process should be made online. The banks should also be authorized to correct the challan. Another option is to accept the offline filing of Form 26QB challan like all other challans. A buyer can fill and submit at a bank branch that is authorized to collect TDS payments. It should be accompanied by correction through RT 18 mechanism.
In the case of under construction property, it is advisable for a buyer to check the Total Value of Consideration from the builder. Sometimes buyers assume on their own and fill form 26QB challan based on their calculation. It is not necessary that basic cost mentioned by the builder in cost break up same is same as consideration value u/s 194IA. For home loan cases, you can also check my post, How to deduct TDS through Home Loan?. I hope that 26QB Challan Correction process will be simplified in the coming days. As the filing of Form 26QB, it can be done completely online with essential details as required for demand payment. Maybe mobile based authentication can be introduced for online correction.
Currently, i receive a lot of queries wherein buyer try to find out ways and means to avoid TDS u/s 194IA. It is true for property transactions near to 50 lacs in value. I don’t endorse or suggest such practices. My suggestion to readers is to prevent any mistake so that hassle of correction can be avoided. Shortly, i will write a post on most common mistakes in Form 26QB based on queries posted on my blog
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Recently I met one of the builders at Pune where they are are doing a number of construction projects. According to them the above discussed TDS is to be borne by the buyer over and above the value of the building when it exceeds Rs.50 Lacs, and promised that they will take care of all other things. If we are agreeable then we can proceed, other wise we will be shown the way for the door. At this juncture what a buyer can do? Is the IT department watching?
Another one of my friends also recently sold his immovable property At Chennai for a consideration of around Rs.55 Lacs. When I discussed this matter with him, he simply said that his rate is fixed and it is for the buyer to answer and pay all the TDS and all that and the sale did went smoothly with out any hitch and without TDS. When I again raised this topic with my friend, he just walked away from me and never met me again. Is there any control at the Registrar level or at the IT Department to oversea these irregularities?
My point is whenever there is this type of sale, it is buyer who is affected, even though he is liable to deduct TDS. If he is not aggreeable he will only loose the deal. Your kind comments please.
21-12-2015.
Thanks for sharing your experience. Unfortunately this is common practice. The TDS value is added to the cost of the property. IT department or sub registrar cannot control this practice as price negotiation is between buyer and seller. They can mutually decide who will bear TDS cost.
The same practice is adopted for VAT and ST. These components are builders liability but they charge it from buyers.
Dear Sir,
Recently I received a demand on late payment of TDS on property. Instead of making a payment using link ‘Demand Payment for TDS on Property’, I filled a new Form 26QB with same date of payment and paid the interest and fee. Now I have received a another demand for neew Form 26QB I submitted. Please guide on how to resolve this.
Firstly, you should clear the original demand raised for late payment of TDS. After that you can approach your AO to cancel and refund the TDS/penalty wrongly paid through new form 26QB. You can explain him that it is done by mistake and under ignorance. He will cancel your new form 26QB along with fresh demand raised against new form 26QB.
Hi Nitin,
We also got demand notice in March 2015 and back then there was no demand payment link. We paid demand through another new 26QB in Apr 2015. Now we got notice from IT for new form 26 QB. Please guide us how to resolve it.
Thanks
You may approach your AO to clarify the same. Demand payment cannot be paid through new challan.
Thank you sir for the useful information that you kindly provided.
I have two questions.
1. If buyer and PAN Assessing Officer are in different city then is it possible if someone else can submit the rectification application to AO.
2. What should be the format of NOC. It would be a great help if there is any standard format for it.
1. Yes. You may issue authorization letter to concerned person to submit application on your behalf.
2. Format of NOC vary from case to case basis as i understand there is NO standard format
I received following email from Traces.
Dear Sir/Ma’am,
We have taken note of your request related to correction in form 16B/26QB.
It is to inform that the functionality of correction related to form 16B/26QB correction will be implemented by the end of the 1st Week of Apr’16.
Taxpayers will be provided full fledged online correction facilities on TRACES portal and they will be able to correct the following fields:
– Financial Year
– Permanent Account No. (PAN) of Buyer or seller
– Amount Paid/Credited – Amount payable to the Transferor/Seller
– Date of Payment/Credit ((Date of Payment to the Transferor/Seller)
– Date of Tax Deduction
– Break up of challan amount ( Amount in tds/ fee/ interest/ other columns can be interchanged)
You shall be informed through the TRACES portal as soon as the functionality is implemented.
However, currently the corrections mentioned below can be done by submitting the application for correction of challan to Jurisdictional PAN AO with the no objection certificate from the seller on an affidavit (in original).
After processing, the correction will be reflected in form 26AS of the seller as well buyer.
1) PAN of buyer/seller
2) Assessment Year
3) Major Head [i.e. 20 (corporate) & 21 (non corporate)]
Note: No correction is currently allowed for change of minor head (i.e. minor head 800 to other taxes having minor heads 100,200,300,400 etc. or vice versa) or amount.
Thanks for sharing the info.
Don’t know how true is that cause the approval process has been kept very complex by the regulatory body. Also the Customer support team is unaware about any such development.
Online correction is already implemented. As per the feedback from readers of this blog, the process is complex.
while filling the TDS by mistake I have made wrong year for payment details. for example payment date is 20.01.2016 by mistake it was entered as 20.01.2013.
How can I correct this date online?
There is NO online facility. Please follow the steps as i shared in my post.
By mistake I put a wrong date in the field of date of deduction in my 26QB form.now I have been served a notice for interest on late deduction.
Can I correct the date of deduction now. I have all supporting proof for the same.please note I am an individual property buyer not maintaining any books of accounts so I believe date of payment should be date of deduction as well.please guide me.
I too did the same mistake, I assumed “date of tax deduction” must be date the tds is paid online and hence date mentioned in the “date of tax deduction” was not same as “date of payment/credit” and got the notice yesterday.I tried clicking on “File correction” (to check if I could update Date of tax deduction)” via traces, but I received the message as below:
————————————————————————————————————-
As you do not have registered Digital Signature updated, the correction request will require AO approval for critical fields update:
PAN Details (Buyer / Seller)
Financial Year
Date of Payment / Credit
Date of Deduction
Amount Paid / Credited
—————————————————————————————————————–
Looking at the process involved in filing correction(as its not done easily online), I feel I would rather pay “Interest on Late Deduction” (as this process seems easy and the amount is around 200rs) than the process involved in correcting the challan!
As per the intimation my cpc, I have been asked to pay Rs 200 against “3(a) Interest on Late Deduction”.So I went to “Demand Payment” challan (as mentioned by you in your other post), but I am not sure about whats to be filled and in which rows/columns. This challan has Principal Tax, Interest, Penalty and Fee rows along with “Demand as per Intimation” and “Demand being paid” columns.
So, should I enter 200 against “Interest row” or Penalty row ?
Thanks for always guiding us with valuable info!
You need not pay as it is only typo error from your end. I suggest you to approach your AO for correction along with supporting documents. If you have decided to pay the penalty then you can enter the Rs 200 in “Interest” section
You may reply to IT notice with all the supporting documents and request him to correct the same. Your understanding is correct, if the TDS is deducted then date of payment is date of deduction.
I assumed “date of tax deduction” must be date the tds is paid online and hence date mentioned in the “date of tax deduction” was not same as “date of payment/credit” and got the notice yesterday.I tried clicking on “File correction” (to check if I could update Date of tax deduction)” via traces, but I received the message as below:
————————————————————————————————————-
As you do not have registered Digital Signature updated, the correction request will require AO approval for critical fields update:
PAN Details (Buyer / Seller)
Financial Year
Date of Payment / Credit
Date of Deduction
Amount Paid / Credited
—————————————————————————————————————–
Looking at the process involved in filing correction(as its not done easily online), I feel I would rather pay “Interest on Late Deduction” (as this process seems easy and the amount is around 200rs) than the process involved in correcting the challan!
As per the intimation my cpc, I have been asked to pay Rs 200 against “3(a) Interest on Late Deduction”.So I went to “Demand Payment” challan (as mentioned by you in your other post), but I am not sure about whats to be filled and in which rows/columns. This challan has Principal Tax, Interest, Penalty and Fee rows along with “Demand as per Intimation” and “Demand being paid” columns.
So, should I enter 200 against “Interest row” or Penalty row ?
Thanks for always guiding us with valuable info!
Hi Nithin,
Could you please help me pay the demand and let me know in which field I need to fill Rs 200
Thanks
Shwetha
It will be in “interest” section
thanks a lot Nitin
Nitinji if we pay the interest will that close the query or it will still stand as pending and interest will keep on pilling?
The case will be closed if the demand is paid
I have putted the wrong date of tax deduction in form 26QB. How can I rectify this. I called to TIN NSDL Helpline they contact to AO. I searched on net, it is showing that NOC required from Buyer. What would you suggest. We have to go AO or wait for Notice.
As i shared in point no 6 that seller NOC is required. After that you can approach your AO to correct the same. You should proactively get it corrected rather waiting for notice from IT department.
I have entered incorrect amount the demand letter from developer had net amount and as its been stated by Mr.Nitin most common error we do i also did instead of mentioning gross amount i mentioned net amount but paid complete TDS amount.
Now getting the correction in place has become a nightmare for me.
My AO officer details showing in my PAN details is for an altogether South India where as i am based and exist in Maharashtra. running poll to post with minimal support from developer which is not helping me for anything.
is there a provision that we can pay fine/ penalty and close this so developer faces no issue and owner/ buyer gets their asset.
You may contact your AO over phone and discuss your case. My experience is that they are very helpful and supportive.
Nitin ji, after struggling a lot some how i managed to get a phone number of Coimbatore AO office but the help they are offering is minimal or nil. I have paid tax complete and correct have bank challan copy also with me and bank statement of complete amount been transferred but this correction process is not at all consumer freindly.
I do understand but unfortunately there is no other option for buyer :(
Hi , I have made an mistake in fee amount. By mistakely I have put amount paid in fee section in form 26qb. Please help
You can approach your AO for correction.
How much days AO takes for 26QB correction approval any idea. Can you help me to expedite the process
There is no such timeline. It may take 1 day or 1 year also.
AO ward detail mention are this TDS WARD 1(2)(1), MUMBAI,AAYAKAR BHAVAN,MUMBAI
Can you help me to get there contact details. You help would be appreciated
You can call (022) 22082172
It require registered digital signature.
I just wanted to share my experience with the Form 26QB correction. I had purchased a flat in July 2014 and while paying the 1% TDS amount I had incorrectly selected the FY as 2013-2014 instead of 2014-2015. The seller was not able to claim the amount since it was reflecting the TDS in his 26AS for the wrong year. Since there was no correction procedure in place back then, I was sent from one IT office to another with my application.
Finally, in Dec 2015 my AO informed me about the process make the correction. I provided an application along with the challan copy, NOC from the seller and a copy of the sale agreement in Dec 2015. However, there was no way to find out when the correction will happen.
In Feb 2016 on my visit to the IT office, I was informed that they have sent the details to Delhi and now there is no way to track how long it will take. Thankfully, through my online research I found out that TRACES is launching 26QB Online Correction on their website. It launched it in March 1st week and I immediately applied for the correction. My AO approved it within a day but to my surprise they had already corrected the AY.
The online correction system is really fast and I hope your issues are solved immediately.
Thanks for sharing your experience. Only limitation is that a buyer need digital signature for any online correction.
Actually if you have a digital signature then AO approval is not needed.Since I didn’t have the digital signature..I asked for AO approval and I got the approval next day itself.
I have alomost exactly the same problem. I made the payment in 2014, but incorrectly mentioned it as 2013. The challan was paid on same day (2014). Due to this there us a gap of 1 year from payment and tax paid date. I have just filed the online correction via TRACES and got the Ack. It says I need to print out the ACk and send it to AO with relevant documents. The relevant document in my case would be my bank statement that indicates the date of payment as 2014. My question is: Do we just send the Ack and relevant document via normal post? Or do I have to meet the AO personally? Or should I just wait for a few days to see if the online correction is approved? Thanks.
It is better to meet the AO, explain the details and submit documents by hand.
Hi Shuva,
If the system says you have send the acknowledgement to the AO then you should do it. I think it is best to meet your AO with all relevant documents i.e. sale deed, bank challan copy, 26QB acknowledgement, Form 26AS (which shows the amount parked in the wrong year). I had submitted all these documents along with my written application.
Hi Doreen,
Can you please tell me how you got the AO approval? did you visit personally or did you send PAN card copy and form26QB to the AO? Because I have made corrections to form 26QB in TRACES but don’t have digital signature. I’m located far way from the AO office location. So in this case is it necessary to visit personally the AO or there is a way out? Thanks for your help…
Hi Praveen,
The online correction system allows you to ask for AO approval. You don’t have to visit the AO or send any details to him.
Click on the option Request AO approval and check the status the next day. Most likely it will show approved.
Hi Doreen,
Thanks for quick reply. But I don’t see “Request AO approval” option to click. Am I missing something here?
This option is available if you have digital signature.
Hi Nitin,
I am currently based out in USA and I had bought an under construction proprerty in Pune in 2014. I have power of attorney given to my mother to buy the property. She did take care all formalities. My builder while filling 26QB made a mistake and upadeted buyer (including PAN number) as my mother’s details instead of my name and PAN number. What can I do to correct buyer information to my name. My AO showd Hyderabad as I was paying my tax there but now I am in USA and not goint to travel to India for another year. How do I get help with respect to correction of my 26QB?
Please check following link
https://www.nitinbhatia.in/real-estate/26qb-challan-correction/
Hi Nitin,
I have recently got an email from CPC stating that 26QB statement not yet filed for purchase of property during FY 2013-14. The property was purchased in end FY12-13 and possession obtained in April of FY14. The rules regarding deduction of TDS became effective from 1st June, 2013. The system only gives option of filing 26QB statement, to whom shall i inform about this error and how shall i get it corrected. Does it require visiting AO. Pls advise. Thanks.
It depends when the payment was released to the seller.
Sir, we have bought a house on Aug, 2013 & we were unaware of the PAN of seller during the transaction. Now we are unable to locate the seller and get the PAN number. What is the next steps?
You have not mentioned why you need PAN and ideally it should have been mentioned in your sale deed.
Thanks for good tips on 194-IA. In 26QB form, I filled date of payment as 29 March, 2016 and Date of Tax deduction as 30 March, 2016 and deposited tax on 7 April,2016. Can you clarify, is there any need to correct date of tax deduction?
I am assuming you deducted TDS on 29 Mar, 2016 only.
Seller was insisting on installment amount without TDS deduction. I was unsure to deduct TDS, so I given DD of amount demanded by him on 29th March for 1st installment. But after a day of payment, i was advised by someone to compulsory deduct TDS. So I deposited TDS on 7th April with income tax and asked seller to adjust the TDS amount from remaining due amount. The letter sent to builder/seller on 29th March along with DD did not mention any TDS deduction.
Thats why i filed date of deduction as 30 March.
Is there any need to rectify it?
You have deposited TDS without TDS deduction. Income tax will consider 29th Mar payment as 99% of total consideration value.
Thanks a lot for answering my queries. I have now submitted original form 16B to builder after downloading from TRACES and asked builder to consider TDS as part of payment due to him. Kindly guide, should i file any correction or not? or any other step in order not to face any inconvenience in future.
As i mentioned, TDS is deposited without deduction. Therefore, the info mentioned in challan 26QB is incorrect.
I got sms informing defaults in 26QB have been identified. In the Justification report due to late deduction of TDS (one day late), i need to pay 137 rs. (Late Deduction Interest Computation u/s 200A) i.e. 1% interest charges for one month (as for part of a month). As pointed by you also, I had already taken care of 99% of total consideration value for 29th March payment. I paid the Demand Payment by quoting Communication/Intimation Reference No. and Acknowledgement no. of defaulted 26QB through demand payment link of tin-nsdl website.
I read your answer to similar query above that case gets closed after that.
Is there any need to file correction etc. or from Where can i get confirmation about settlement of default. Does this interest payment will be available in 26AS?
Case is closed. No further action required.
Hello Sir, in my case there were 2 buyers and 2 sellers. We filled 4 challans dividing the TDS amount into 4 parts. However, we mentioned the full property value in all 4 challans. now we have received 4 reconciliation notices for short deduction. How can we get this corrected. We have pad the entire TDS amount as per the property value.
I cannot comment without going through all the details. The process shared by seems to be correct.
Hello sir,
I have filled up form 26qb and later it redirected me to the bank site for the payment. Now the payment is done and I have the payment counterfoil (ITR 280).I have applied for housing loan. Now the firm is asking to submit form26qb challan for loan disbursement which i do not have. How/From where should I download the 26qb challan which was filled already since i couldn’t find anywhere online.
You can download TDS certificate i.e. form 16B from following link
http://contents.tdscpc.gov.in/
Hello Sir,
I had filled form 26qb incorrectly while buying property in 2013-14. Buyer and sellers name were interchanged.I know there is an online correction now. What i want to know is, if i do correction now will the seller be able to claim the TDS amount since its already 2 yrs?Will it reflect in her form 26AS for this year or for 2013-14. Your reply will be a great help.
In your case, you can approach your AO for correction.
The builder has accepted the full amount of the cost of the flat in or about September 2014 accept Rs 50000/- which is to be paid at the item of the possession of the flat. I wrote to the builder to credit 1% as TDS from the amount he had already collected from me but the builder paid no heeds to my request till date in spite of reminding him on phone several times. What shall I do now?
You can submit written application and take acknowledgment from builder.
Hello Sir I paid TDs on property and I got a “defaults have been identified ” mail from income tax because i didnt pay interest for a day. I have to pay some amount and I did the same by online payment and I do have the bank chellan ack. My question is do i need to do any correction in 26QB or making the payment is enough.
Correction is not required. As you paid the demand raised therefore case is closed.
Dear Nitin,
I got sms saying defaults have been identified. In the Justification report i saw that date of deduction was 23rd May while the Date of payment was 18th April. So for 5 days delay i need to pay 190 rs. (Late Deduction Interest Computation u/s 200A and u/s 154 read with Sec 201(1A))
Now to pay this amount by Demand Payment, what will be the following details:-
1) Communication/Intimation Reference No.(I did not get any mail so what will be the refernce number? Is it same as the Acknowledgement number)
2) I understand from your post that i need to put 190 rs as the interest.
3) Now after paying this 190 rs, what should be my next step. Where to mention that i have paid this amount and close this case so that no defaults are found later.
I hope you answer the above details in detail and help a senior citizen like me.
You may check for reference no else you can use ack no. After the penalty is paid, the case is closed. No further action required.
Hi Nitin,
Me and my wife purchased a flat in June 2014 and deducted 1% TDS. I filed form 26QB within the required time-frame, but mentioned the date of deduction as June 2013 instead of June 2014 by mistake. I have now received a notice for the one year delay for a significant amount.
When trying to file the correction request on TRACES, the website is not allowing me to submit the correction with the error message “The property cost and payment amount can not be same if the number of buyers are more than one.”
When doing a search about this i realized that I had to file 2 challans for the TDS since there were 2 buyers. I have paid the entire TDS amount with one challan only. I am not able to contact the AO as well since the website is not letting be submit the correction.
Please help with the best course of action for me.
In current scenario, you should pay the amount demanded and close the case. As you have not filed challan for your wife therefore if you opt for correction, the penalty will increase manifold.
Hi Nitin
Can we correct 26QB online with DSC or without DSC in case where there were more than one buyer but the form 26QB was filed by only one buyer with total TDS amount. Can we add another buyer details ?
Online correction is only possible through digital signature. Online correction does not allow change in no of buyers.
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
The date of payment is 17 June 2015. You have to pay the penalty.
Thanks for the reply. I paid the penalty. Do i need to send any documents to CPC/ any IT department.
No
I Am staying in UAE and purchased property in Mumbai. For that while filling form 26QB by mistake I have put the payment date 20/06/2013 instead of 20/06/2014 when I paid the same on 24/06/2014 thru AXIS bank, now i got a email for default and late fee and interest is calculated for +one year. How can i correct the same and get rid off late fee and interest.
You may approach your AO for the correction. If you have digital signature, you can also apply for online correction. Your AO may demand bank statement to prove that payment date in the challan is wrong.
Dear Nitin Sir,
My husband received a SMS for demand payment u/s 200a, but did not recieve the demand order by e-mail. We sent an email to contactus@cpc.gov.in and told them that the e-mail ID mentioned in both 26QB and traces login are correct also attached the 26QB and Justification report for the said payment for which defualt was identified along with Ack No. They are still refusing to resend the TDS CPC demand order. And without TDSCPC communication No, we cannot make the demand payment also. Please let us know what to do.
Thanks
Jaya
Dear Nitin Sir,
My husband received a SMS for demand payment u/s 200a, but did not recieve the demand order by e-mail. We sent an email to contactus@tdscpc.gov.in and told them that the e-mail ID mentioned in both 26QB and traces login are correct also attached the 26QB and Justification report for the said payment for which defualt was identified along with Ack No. They are still refusing to resend the TDS CPC demand order. And without TDSCPC communication No, we cannot make the demand payment also. Please let us know what to do.
Thanks
Jaya
You may check your SPAM folder. Also check the email shared by you on the online portal http://incometaxindiaefiling.gov.in/
Dear Nitin,
I have made payment of interest demand (for delay in deduction of TDS) as per the notice received from TDS intimation. I do have the challan copy and acknowledgement. Now after 15 days, I have again received a notice, which is the same old notice dated even date, for payment of interest. Now should we write to the AO who has signed the notice to take cognisance of the payment of demand or should we write to contact at TDSspc.
Thanks
First you should check CPC – TDS helpline. It seems to be duplicate notice thus can be ignored if the demand is already paid. You may check the notice ref no. If it is same for both the notices then second notice can be ignored.
Dear Nitin,
I received yet another demand for another TDS deducted for another installment of the Property. This time demand order shows “Short Deduction” Rs 0.44, I checked form 26QB and the actual TDS amt was 11299.44 but since the bank portal did not allow decimal I paid 11299 instead of rounding it to 11300.
1. What is the procedure for making “Short Deduction” Payment u/s 200A. Do I use the “Demand Payment” Link to make the payment. If so under what head do I enter this amount since I see the following ” Principal Tax” “Interest” and “Fee” .
2. After I make the payment what is the next step. Do I need to make any correction to form 26QB
.
Thanks,
Jaya
I am in the same boat. I would like to know the same if we need to inform about demand payment.
1. Please share details of demand raised including penalty etc.
2. After the payment is made, the case is closed and no further action required.
Dear Nitin,
I have entered the builders personal PAN as that for Seller. But he insists the PAN of his registered firm to be mentioned. Does it make any difference? Will I have to correct the 26QB? Plz help..
Regards,
Aumkar
You should have mentioned the PAN of his registered firm as he is not selling the property in an individual capacity. You need to get the form 26QB corrected.
Dear Sir,
When the booking was made the sale consideration was Rs 90L and we paid 20% as booking and the 1% was deposited. After this was done, they made minor modifications to the project plan and there was a slight increase in the Sale consideration.? So I have 2 questions in this regards.
1. Do I need to go back and correct the form 26QB that was already submitted when we paid the 20% booking amt initially?
2. All future transaction will reflect the new Sale consideration?
Thanks
Jaya
1. You need to correct the form 26QB.
2. Correct
Thanks Nitinji
Dear Nitin,
Can you please tell me how to get the AO approval for form26 QB correction? Can I send PAN card copy and form26QB to the AO? Because I have made corrections to form 26QB in TRACES but don’t have digital signature and I’m located far way from the AO office location(Ahmedabad). So in this case is it necessary to visit personally the AO or there is a way out? Thanks for your help…
You may check with your AO whether he needs any documentary proof from your end. Once he will receive all the details, the case will be expedited. In some cases, the correction is approved within 1-2 days.
How to know who your AO is? I have received a demand notice for 26QB correction. The problem is when I am trying to pay it online it is asking for ‘Penalty Code’ 11C or N11C. What to select?
Dear nitin,
i am not able to correct my 26qb form ,for sale of property{purchaser] online by digital signature.i have to change date of payment only ,i mistakenly entered 29/6/13 instead of 29/6/14.Getting error message” unable to submit the correction statement” in red letters.other line :”details to be printed on form 26qb correction acknowledgement” {in black letters}.please advise what to do .i came to know about my mistake only once i got demand notice from cpc .thanks a lot in anticipation
You have not mentioned whether you updated your registered digital signature in the system or not.
I have received a demand notice for 26QB correction. The only correction i need to do is payment of penalty and fee. All other details are correct. Do I need to get the NOC from Buyer in this case as well?
Also the problem is when I am trying to pay it online it is asking for ‘Penalty Code’ 11C or N11C. What to select?
You don’t need any NOC in this case. Just pay the penalty and case is closed. You may check under which section penalty is imposed. Mention 11C, if the penalty is u/s 271(1)(c) and N11C is penalty other than section 271(1)(c).
Dear Nitin ji,
I have one query belonging with two pan card, My client’s submitted new pan card at the time of selling the property instead of previous old pan card, after that client is received tds certificate 16b, client is checked pan is wrongly mentioned in form 16b and also already applied for surrender new one, client already requested for change the pan number in form 16b to buyer of property but buyer is not any initiated on above matter. Please clarify how to take tds credit on sale of property which is pan number is hold by client.
Thanks
Holding 2 PAN cards is illegal. It is an offense and your client has to pay penalty of Rs 10,000. I don’t think so that buyer will support in this case. Any change in challan/form 26QB can only be initiated by the buyer. In my opinion, your client can bring it to the notice of his AO (original PAN Card) before any action from IT department and explain his stand. If IT department find out on its own then he will be in a bigger trouble.
Dear Nitin,
I am writing this email to clarify about the TDS default notice received on 26QB filling.
I have purchased the Apartment in Dec 2013 with a timeframe of 3 years to complete.
The total consideration amount is Rs. 8185225 /-
The agreement was done on 02.Dec.2013 with a down payment of Rs. 1637045/-
The builder informed me about the 1% TDS in the month of April 2014 and also informed that the entire TDS can be paid in one installment.
I have paid the entire TDS of Rs.81853/- on 13.Jun.2014.
After the agreement, the first installment of Rs.818520.50/- is paid on 31.01.2015.
Further on as on May 2016, I have paid an amount of Rs.6957441/- (85%) to the builder.
In May 2016, I got a TDS default notice from TDS cell for late payment and Levy charges for RS.39990/-
The reason being that while filling the 26QB form, I have wrongly entered the total amount paid as Rs.8185225/- which was
the total consideration amount (I had the wrong assumption that since I am paying the complete TDS, the total amount has to be mentioned). Also I have mentioned, the date of payment as the agreement date.
Since the payments to the builder is in installments and the TDS for the total Consideration is paid in advance, could you please guide me how to correct the 26QB online?
For online correction you need to register digital signature. Changes in critical fields may require AO approval. I suggest you to approach your AO. For offline process, you may go through my post on this webpage.
Hello Nitin
My father in law purchased a flat in 2014 and entire consideration was paid for by him, however to get the benefit of lower registration charges on joint property, my wife’s name was added.
The 1% TDS deducted was paid thru PAN of my father in law as entire payment was made by him. 26QB was filed only for his PAN. My wife has now received an email from the Income tax tdscpc, reminding that 26QB has not been filed. What should I do.
regards
Legally your wife is co-owner of the property and as i explained in my post that all the co-owners should deduct and deposit TDS in proportion of ownership. Now you need to deposit the TDS along with applicable penalties as demanded by IT department.
Hi Nitin,
I have done made mistake while online correction. Changed the Amount paid field to TDS challan amount by mistake, while it is actually the amount paid to the buyer. Actual TDS I paid is not reflected in F16B , 1% of TDS amount paid is what is reflecting now.Online correction is not allowed again for the same field. What can be done in this situation.
Thanks
You may follow the steps as i explained in my post.
Hi Nitin,
I have paid TDS Challan 26QB using Net Banking then it redirect it to me with Payment Details then I put amount in “Others” instead of “Income Tax” / “Basic Tax” so will it be occur any issue till now Form 16B not yet generated as 3 days not over.
You wait for TDS certificate i.e. form 16B.
Hey Mahavir,
I did the same mistake. Is it fine?
Hello Nitin,
I have paid TDS Challan 26QB but mistakenly filled Date of Payment & Date of Tax Deduction as 1 August 2015. I submitted the form on 30 Jan 2016. On 11 May 2016, I got notice of penalty for late TDS Deposit. I am now in process of filling correction request on TRACES website.
Thanks to your posts for guiding. Now, I have 1 question.
I have made my 40% payment to builder on different dates i.e. :
1 Aug 2015 – 3,00,000
1 Sep 2015 – 5,00,000
10 Oct 2015 – 12,00,000
23 Nov 2015 – 95,000
Now, please suggest what should be the Date of Payment/Credit and Date of Tax Deduction in this case as I am confused.
Also, what all proofs will AO need as supporting evidence to above correction?
Many Thanks,
Gaurav
You have not mentioned whether you deducted 1% TDS along with each installment or not.
Hii Nitin,
I have purchased under construction Flat in Jan 14 and payment given to builder in installments.. I have not deducted 1 % in each installments but In March 15 I paid lump sum TDS of 1% of Agreement cost. Also note date of tax deduction is mentioned wrong in 26QB. its June 13 and date of payment/credit Jan 14.
Pls advice what should be date of payment/credit and date of Tax deduction in my case. Pls advice Date of payment/credit should be March 15 or Jan 14 and Date of deduction should be March 15 or Jan 14.
Thanks in advance
My apologies but your query is not clear to me. Kindly share with one example.
I have purchased under construction Flat in Jan 2014 still not received possession.
Payment given to
builder in installments without deducting 1 % TDS in each installments..I have deducted 1 % TDS on agreement value i.e Rs. 60000 and paid lump sum in one shot on March 2015.
Now i got TDS intimation from CPC with interest on late payment and late filing levy.
On 26 QB below dates are reflecting.
Date of Agreement/Booking 27/01/2014 – Correct
Date of Payment/Credit 27/01/2014 – I paid TDS on 14/03/2015
Date of Tax Deduction is 09/06/2013. Don’t know why this date is reflecting on 26 QB
Date of Payment/Credit is date on which you made a payment to the builder. Ref to date of TDS deduction, you may clarify the same from your AO.
In the article you have mentioned “Tax deducted(TDS) from payments made to seller shall be deposited to the goverment treasury within 7 days from the end of the month of deduction.” which is consistent with lot of other articles that I read on the Internet and also as explained by my CA.
However, on the home page of TRACES website under the heading 26QB filing it’s mentioned “TDS deducted u/s 194IA (TDS on sale of immovable property) shall be paid to the credit of the central government within a period of thirty days from the end of the month in which the deduction is made and shall be accompanied by a challan-cum statement in Form No. 26QB as per Income Tax Rule 30(2A).”
My query is: Is TDS to be paid within 7 days or within 30 days from the end of the month in which deduction is made?
Please check following link for Income Tax Rule 30(2A). Under this section, check comment 84aa that states “Substituted for “seven days” by the Income-tax (Eleventh Amendment) Rules, 2016, w.e.f. 1-6-2016″. Therefore, the information shared by me in the post is correct.
http://www.incometaxindia.gov.in/_layouts/15/dit/pages/viewer.aspx?grp=rule&cname=cmsid&cval=103120000000007386&k=&isdlg=1
Hi Nitin, i forgot to take a print out of the form 26QB. Only took print out of the acknowledgement form. Now the bank wants a print out of form 26QB to pay off line. How do I get print out of the filled in form.
I doubt you will get copy of form 26QB offline.
Hi Nitin, i have a query. I have received a default intimation for an TDS payment made, for a payment made against an property installment. The date of payment/credit is 17th May and the date of deduction is 28th May. Still in the justification report I have to pay interest on late payment which is 1% of amount payed.
Can you please help me understand why is it a late payment.
TDS is due at the time of making payment. For delay in deduction penalty is applicable. Fraction of month is considered as full month therefore in your case there is delay of 11 days in deduction thus penalty of 1% is justified.
Ok sir, But just for my information can u please elaborate, I have read that the TDS is payable by the 7th of next month.
You can deposit TDS on or before 7th of next month provided TDS is deducted along with payment as it is due with payment. In case of delay in deduction, penalty is applicable from immediate effect.
Hi Sir,
I made TDS payments for the booking amt, for a property booking during the pre-launch phase in Sep 2015. The booking amt was paid in 3 cheques and while filling I had entered the booking date for the field Date of Booking/Agreement.
In March 2016 the builder made some changes in the plan and the property value also changed, so they have given me a new booking allotment letter with the new Property value. A recent TDSCPC mentions that property details including property value can be changed with auto approval.
For the 26QB forms already filled and TDS paid
1. I need to make correction to all the 26QB forms previously filled to reflect the new property value ?
2. Do I need to correct the date of agreement/booking, to reflect the new booking date. But then again, the TDS was paid before the changes happened. So Do I leave this field to reflect Sep 2015.
With respect to future payments.
1. once the agreement is signed can I use the date of agreement instead of date of booking in the subsequent payments of the TDS or do I need to stick to the same date mentioned in my earlier 26QB forms?
Thanks,
Sujitkumar
1. Yes
2. It depends whether old booking was cancelled and fresh booking initiated. In that case, it will be considered as fresh purchase. In case new booking form is just an amendment/addendum to existing booking form then no need to make any changes.
3. It is advisable to quote same date as you are quoting till date.
Hello Sir,
We filled a new booking form and the builder issued a new Booking Alloment Letter, but they have adjusted the booking amount that was already paid last year in the new allotment letter.
In such a case do I update the booking date in the already paid 26QB forms?
If the answer is Yes to the previous question. will it be an issue to mention a future date (june 2016) of booking in the 26QB correction for the ones paid last May 2015?
Thanks,
Sujitkumar
As i mentioned that it will considered as fresh purchase. You need to deduct and deposit TDS all over again including for the amount adjusted. You can mention new booking date for all the fresh challans.
hi nitin ,
if there are 2 buyers(hub and wife) and 1 seller and i split and make a delayed TDS payment in 50:50 proportion using 2 challans.. how these 2 buyers are linked in the system as they share the same property . there is only one field in form26QB which just asks whether there are more buyers . other than that i do not see any way to track if 2 or more buyers are sharing the same property …
since there are 2 TDS paid using 2 different challans on the same day as there are 2 buyers and lets assume the delay is 10 days will each buyer have to pay a late fee of 200×10 = 2000 ? will each buyer get a notice to pay 2000 each in this scenario. if so multiple buyers will double or triple the penalty for the same TDS amount.
The entire chain is linked through PAN of buyer and seller. The penalty will be calculated for each buyer separately as the case may be. You are right that late fee multiply with each buyer.
thanks nitin for clarifying .. actually it doesnt look fair when both the buyers get penalised which is double the penalty , because in many cases i have seen non- earning wife as a joint owner . It may be fair to have 1% interest applicable to both buyers as it is proportionally divided among buyers , but the per day 200 rupees penalty for both buyers is not proportionally shared and would be too high especially in case of husband and wife( non earning) as buyers because end of the day it is borne by the earning member only. ( you can also add this point as cons in your blog on adding co owners to a property ;) – just a thought because no where i could find the details about this scenario ) ….
I do agree but the scenario arises only in case of delay. Preferably the buyer should deduct and deposit the TDS on time to avoid this scenario.
I have explained offline correction process in my post on this page. As there is a change in Amount Paid/Credited therefore you may need to follow the complete process. I suggest you to hire a CA who can help you in this. Before that you can approach your AO.
1. You have not paid therefore how IT department will know the TDS deducted
2. No. You should get the form 26QB corrected
3. You need registered digital signature. Online correction is a simple process. It will be done automatically provided there is no other complication. Your AO may ask for proof of payment.
Sir,
Thanks for this useful article.
I have a query that i have generated the acknowledgement no. after filing form 26QB but not made the payment yet. after generating the no. i found that there is a mistake in date of payment & deposition of TDS. Is it possible to fill the whole information again and generate a new Callan.
Also do i need to fill two challans with 50-50% share in consideration value & TDS amount, as we are buying the property in two names.
total consideration amount is rs. 64,00,000.
You have not mentioned the mode of payment selected by you.