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TRACES : Form 26QB Correction using E-Verify Internet Banking

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Sakshi Shah

DSC
Form 26QB
TDS
TDS Returns & Forms
TRACES
TRACES Login

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:

  1. View ‘Form 26QB – Default Summary’ on TRACES – to view a summary of defaults or errors made in Form 26QB filed
  2. Download ‘Form 26QB – Justification Report’ on TRACES – to download the details of errors or defaults in Form 26QB filed
  3. File ‘Form 26QB – Correction Statement’ on TRACES – to file a correction statement to rectify the errors made in Form 26QB filed

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 using E-Verify (Internet Banking)

  1. Log in to your Internet banking account

    Login to your Internet Banking account on the website of Bank. Click on ‘View 26AS.’ The taxpayer is navigated to a new page. Click on ‘E-Verified Services on TRACESTRACES - Form 26QB / 26QC Correction E-Verify - E-Verified Services on TRACES

  2. Log in to the TRACES account

    The taxpayer is navigated to the TRACES website. The User Id and PAN of the Taxpayer are auto-populated. Login to the account and continue with Form 26QB CorrectionTRACES - Form 26QB / 26QC Correction E-Verify - Login to TRACES

  3. Navigate to Request for Correction

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

  4. Form 26QB

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

  5. Review the checklist

    Review the checklist and click on ‘ProceedTRACES - Form 26QB Correction - Review Checklist

  6. Enter the required 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

  7. Success message

    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

  8. Navigate to Track Correction Request

    Go to Statements / Forms > Track Correction Request

  9. Enter the 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.
    Note: If the status is ‘Submitted’, please wait for 24 to 48 hours for the status to change to ‘Available’

  10. 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

  11. Correct 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

  12. Fields that can be edited

    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

  13. Submit the changes

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

  14. 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

  15. Buyer Details

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

  16. Seller Details

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

  17. Property Details

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

  18. Amount Paid / Credited

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

  19. Confirmation screen

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

  20. Download the 26QB Acknowledgement

    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

  21. Types of status

    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

Can an NRI make Form 26QB Correction using E-Verified (Internet Banking) Service?

NRI i.e. Non-Resident Indian Taxpayer does not have an option to make Form 26QB Correction using E-Verified (Internet Banking) Service. An NRI taxpayer can make Form 26QB Correction only using DSC or with the approval from Assessing Officer.

What should the buyer do if the statement status of the Form 26QB is “Processed with default?”

Step 1: View ‘Form 26QB – Default Summary’ on TRACES – to view a summary of defaults or errors made in Form 26QB filed
Step 2: Download ‘Form 26QB – Justification Report’ on TRACES – to download the details of errors or defaults in Form 26QB filed
Step 3: File ‘Form 26QB – Correction Statement’ on TRACES – to file a correction statement to rectify the errors made in Form 26QB filed 

What is Form 26QB?

Form 26QB is a return-cum-challan form for the payment of Tax Deducted at Source (TDS) to the government for deductions made under Section 194-IA of the Income Tax Act.

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!

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