FACILITY FOR CORRECTON OF FORM 26QB ACTIVATED (REVISED)

FACILITY FOR CORRECTON OF FORM 26QB ACTIVATED (REVISED)

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FACILITY FOR CORRECTON OF FORM 26QB ACTIVATED (REVISED)

Section 194IA of the Income tax Act relates to the TDs deducted on sale of property. Form 26QB is an online statement cum challan to filled and submitted by the buyer of the property for making TDS payment on sale of property. Form 26QB contains details of buyer, seller, property being sold, sale consideration, tax deposited details, address of the property sold etc.

Earlier, no correction was allowed to be made to Form 26QB because of an internet challan.

Now, CPC has enabled functionality for correction in Form 26QB form 29/02/2016.

Reasons for default and need for correction-

  1. Short deduction- Short deduction is computed when the rate at which tax deducted is less than 1%.
  2. Late payment and Interest thereon- When TDS is deducted after the due date of challan deposit i.e. 7th of the next month for which transaction is reported. Interest 1.5% per month from the date of tax deduction to the date of tax deposit is charged.
  3. Late Deduction Interest- When TDS is not deducted on the date of payment, then interest on late deduction 1% per month from the date of transaction to the date of tax deduction is charged.
  4. Interest on Short deduction- Interest on short deduction is calculated @1% per month or part thereof from the date on which tax was deductible to the date of processing of statement.
  5. Late filing fee- As per section 234E, where a person fails to file the TDS/TCS statement within the due date, he shall be liable to pay Rs. 200.00 each day during which the failure continues. Fee amount cannot exceed TDS deductible as per 26QB.

The assessee is required to make the correction request for the following fields by logging into www.tdscpc.gov.in.

Sr. No. Field which can be changed With Digital Signature Without Digital Signature
1. Buyer’s PAN Once the request is raised by the buyer, the same will be pushed to the seller and new buyer. As soon as both of them approve, the PAN will be updated. Once the request is raised by the buyer, the same will be pushed to the seller and new buyer. As soon as both of them approve the correction, by logging into TRACES, the ticket will be sent to TDS AO for physical verification of the facts and genuineness of the buyer. TDS AO, if satisfied, can approve the same.
2. Seller’s PAN Once the request is raised by the buyer, the same will be pushed to the existing seller for approval. As soon as he/she approves, the PAN will be updated. Once the request is raised by the buyer, the same will be pushed to the existing seller for approval. As soon as he/she approves the same, the request will be sent to TDS AO for physical verification of the facts and genuineness of the buyer. TDS AO, if satisfied, can approve the same.
3. Buyer’s Address Auto Approval Auto Approval
4. Seller’s approval Auto Approval Auto Approval
5. Property Details Auto Approval Auto Approval
6. Amount paid/credited- Amount payable to transferor or seller Auto Approval Once the request is raised by the buyer, the request will be sent to TDS AO for verification of amounts and genuineness of the buyer. TDS AO, if satisfied, can approve the same.
7. Date of payment to the Seller Auto Approval Once the request is raised by the buyer, the request will be sent to TDS AO for verification of date and genuineness of the buyer. TDS AO, if satisfied, can approve the same.
8. Date of Tax Deduction Auto Approval Once the request is raised by the buyer, the request will be sent to TDS AO for verification of date and genuineness of the buyer. TDS AO, if satisfied, can approve the same.

 

The aforesaid correction request will be distributed equally to TDS AOs of the region to which the PAN of the buyer belongs and the same will be available in the form of tickets in their TRACES inbox under Tickets menu. The following procedure may be used to approve or reject these tickets-

Step 1- Click on Tickets menu.

Step 2– Click on Inbox.3

Step 3- Click on the corresponding Ticket Number.

Step 4- Downloads the attached documents from communication details Tab.

Step 5- Click on Action.

Step 6- Select 26QB tab to see details of correction.

Step 7– Click on Approve/Reject, as the case may be.

Now, the benefit of correction is made available to the taxpayers paying tax by way of TDS u/s 194IA of Income Tax Act.

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