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TRACES : Form 26QB Correction using AO Approval or DSC

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Sakshi Shah

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Form 26QB
TDS
TDS Returns & Forms
TRACES
TRACES Login
Last updated on April 27th, 2021

TRACES means TDS Reconciliation Analysis and Correction Enabling System. It is the online portal for administration and implementation of TDS (Tax Deducted at Source) and TCS (Tax Collected at Source). When a buyer of an immovable property makes payment to the seller for a sale value exceeding Rs.50 lacs, he/she deducts TDS u/s 194IA. The buyer files Form 26QB and issues Form 16B to the seller. The TDS Return i.e. Form 26QB is processed by CPC-TDS. If the Statement Status of Form 26QB is ‘Processed with Default’, the buyer should:

The Tenant registered on TRACES can submit Correction Request for Form 26QB from FY 2013-14 onwards.

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Steps for Form 26QB Correction on TRACES

  1. Log in to TRACES portal

    Log in to TRACES – Enter User Id, Password, PAN and captchaTRACES - Login Page for Taxpayers

  2. Navigate to Request for Correction

    Go to Statements / Forms > Request for CorrectionTRACES - Form 26QB, 26QC Correction - Navigate

  3. Select the Form Type

    Select Form 26QB to submit the Correction RequestTRACES - Form 26QB Correction - Select Form Type

  4. Review the Checklist

    Review the checklist and click on ‘Proceed’TRACES - Form 26QB Correction - Review Checklist

  5. Select the appropriate details

    Select the ‘Assessment Year’, ‘Acknowledgement Number’ and ‘PAN of Seller’ click on ‘File Correction’TRACES - Form 26QB Correction - Enter Assessment Year, Acknowledgement Number, PAN of Seller

  6. Success Page

    Success page will appear on the screen. A Request Number is generated. You can track the correction request under the tab ‘Statements / Forms’TRACES - Form 26QB / 26QC Correction Request - Request Number

  7. Navigate to Track Correction Request

    Go to Statements / Forms > Track Correction Request

  8. Request number/date

    Enter the Request Number or Request Date or View All. Click on ‘View Request’. A list of requests pertaining to the search criteria will appear. Select the relevant row and if the status is ‘Available’, you can start the correction

  9. Enter Challan details

    Enter Challan Details of any challan paid while filing Form 26QB. Click on ‘Proceed’

    1. BSR Code
    2. The date on which tax is deposited – enter in dd-mm-yyyy format eg: 10-Jan-2019
    3. Challan Serial Number – 5 digit number eg: 00025
    4. Challan Deposit Amount – enter the amount with decimal places eg: 1569.00TRACES - Form 26QB Correction - Enter Challan Details

  10. Edit the details

    Details as per Form 26QB filed will appear on the screen. Click on ‘Edit’ for correcting the detailsTRACES - Form 26QB Correction Request - Form 26QB filed details

  11. List of details that can be changed

    The taxpayer can make changes in the following fields:

    1. PAN of Buyer
    2. PAN of Seller
    3. Financial Year
    4. Amount Paid or Amount Credited
    5. Date of Payment or Date of Credit
    6. Date of Deduction
    7. Property Details – Complete Address of the Property
    8. Property Value – Total Value of Consideration

    Note: If your DSC is not registered on TRACES or if you don’t have e-verification (internet banking), the correction request for the fields listed below would require the approval of AO i.e. Assessing Officer.TRACES - Form 26QB Correction - AO Approval for Correction

  12. Save the corrections

    Make the required correction. Click on ‘Save’. Click on ‘Submit Correction Statement’ once you make all the corrections.

    Financial Year and Tax Applicable – You can change Financial Year and Type of Applicable Tax under this tabTRACES - Form 26QB Correction Request - Financial Year and Applicable Tax

  13. Buyer Details

    You can change PAN, Name, Address or Contact details of the buyerTRACES - Form 26QB Correction Request - Buyer Details

  14. Seller Details

    You can change PAN, Name, Address or Contact details of the sellerTRACES - Form 26QB Correction Request - Seller Details

  15. Property Details

    You can change the type of property and address of the propertyTRACES - Form 26QB Correction Request - Property Details

  16. Amount Paid / Credited

    You can make corrections in the amount paid or the amount credited for purchase of property, date of a sales agreement, date of payment, or credit or date on which tax was deducted. If the amount paid or the amount credited is updated, correction submitted will require Seller’s approvalTRACES - Form 26QB Correction Request - Amount Paid or Credited Details

  17. Confirmation message

    Confirmation Screen will appear. The updated details are highlighted in yellow color. You should review the updated details and click on ‘Confirm the Details’TRACES - Form 26QB Correction - Confirmation Page

  18. Submit correction request

    Profile details will be populated as updated on Traces. Click on “Submit Request” to Submit Correction RequestTRACES - Form 26QB Correction - PAN Details from PAN database

  19. Option 1: Validate Correction Request using AO Approval – Click on AO Approval

    A pop-up will appear with a message to declare that the buyer of the immovable property mentioned wrong or incorrect PAN of the seller and is filing a correction statement to rectify this mistake. Click on ‘Proceed’TRACES - Form 26QB Correction - Disclaimer for AO Approval

  20. Submit Request

    Click on ‘Submit Request’. A pop-up will appear to track correction status. Click on ‘Continue’. The AO Details will be available once the ‘Correction Status’ changes to ‘Pending for AO Approval’TRACES - Form 26QB Correction - AO Details

  21. Option 2: Validate Correction Request using DSC – Click on DSC

    Click on the option ‘DSC’. Click on ‘Proceed’TRACES - Form 26QB Correction - Select DSC

  22. Digital Signature Ceriticate

    Choose DSC i.e. Digital Signature Certificate of the Authorised Person. Click on ‘Sign’. To use DSC on TRACES, it is mandatory to download and install WebSocket emSignerTRACES - Form 26QB / 26QC Correction - Sign using DSC

  23. Success Message

    Once you submit the request using any of the above options, a success message will appear on the screen. You can track the correction request under the tab ‘Statements / Forms’. Click on ‘View / Download Acknowledgement’. Download the 26QB Acknowledgement to submit to the Assessing Officer (AO)TRACES - Form 26QB Correction Request - Request Number

  24. Go to Statements / Forms > Track Correction Request. Here are the types of status of the Correction Statement

    1. Pending for PAN Approval – If Correction Statement is submitted for approval of Tenant or Landlord
    2. Pending for AO Approval – If Correction Statement is pending for approval from the Assessing Officer. User can check AO details in the column ‘Assessing Officer Details’
    3. Submitted to ITD – If Correction Statement has been approved by AO or Tenant or Landlord and is now submitted to the Income Tax Department
    4. Processed – If Correction Statement is processed by TDS CPC
    5. Canceled – If Correction Statement is canceled by Tenant
    6. Rejected – If Correction Statement is rejected by Tenant, Landlord, AO or TDSCPC

FAQs

What are the different types of status of the correction statement?

1. Pending for PAN Approval – If Correction Statement is submitted for approval of Tenant or Landlord
2. Pending for AO Approval – If Correction Statement is pending for approval from the Assessing Officer. User can check AO details in the column ‘Assessing Officer Details’
3. Submitted to ITD – If Correction Statement has been approved by AO or Tenant or Landlord and is now submitted to the Income Tax Department
4. Processed – If Correction Statement is processed by TDS CPC
5. Canceled – If Correction Statement is canceled by Tenant
6. Rejected – If Correction Statement is rejected by Tenant, Landlord, AO or TDS CPC

Who is liable to deduct TDS u/s 194IA?

The buyer has to deduct TDS at 1% of the total sale consideration and not the seller. No TDS is required to be deducted if sale consideration is less than INR 50 Lakhs.

How to file Form 26QB?

1. Go to TIN NSDL website,
2. Go to Services> Select TDS on Rent of Property,
3. Select Online form for furnishing TDS on Rent of Property (Form 26QC)
4. Fill the following Form

Got Questions? Ask Away!

  1. Hey @HarishMehta

    Taxpayers or deductee cannot directly download form 16/form16A, the option to download Form 16/ 16A has been given to the Deductor. So, if you need Form 16 / 16A for TDS deducted by your current or previous employer or deductor you will have to contact them for the same. There is no option available on TRACES whereby you can download it yourself.

    Hope this helps!

  2. Hey @Dia_malhotra

    Yes, individuals can still register as a taxpayer on TRACES even if they do not have TAN of the deductor by providing:

    • Assessment Year
    • Challan Serial Number and
    • Amount of tax you have paid

    Hope this helps!

  3. Avatar for saad saad says:

    In my Justification Report it shows an interest payable error whereas I’ve already paid the interest for that particular month According to the regulations what could be the reason for this?

  4. Hi @saad,

    According to regulations, interest payment default/errors may arise due to error in challan details , short deduction, short payment, late deposit of TDS amount. Here, you can file correction statement and revise the return.

    Hope this helps!

  5. The USB e-pass 2003 token device is particular type of a DSC.

  6. Hi @nisshant

    26QB is the challan cum return statement. As soon as you file the form, TDS amount paid by you gets utilized. There are few corrections that are allowed in form 26QB. You can refer to the article below. You cannot get the refund of the taxes paid through an online method. You can contact concerned Assessing Officer (AO) of the Income Tax Department (ITD).

    You can also contact Aaykar Sampark Kendra (ASK) on Toll Free No. 1800-180-1961 to ask for help.

    Hope this helps!

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