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)
(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
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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