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.
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 TRACES‘
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 Correction
Go to Statements / Forms > Request for Correction
Select Form Type – 26QB to submit the Correction Request
Review the checklist and click on ‘Proceed‘
Select the ‘Assessment Year‘, ‘Acknowledgement Number‘ and ‘PAN of Seller‘ click on ‘File Correction’
Success page will appear on the screen. A Request Number is generated. You can track the correction request under the tab ‘Statements / Forms’
Go to Statements / Forms > Track Correction Request
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’
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: 1569.00
Details as per Form 26QB filed will appear on the screen. Click on ‘Edit’ for correcting the details
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.
Make the required correction. Click on ‘Save‘. Click on the ‘Submit Correction Statement‘ once you make all the corrections.
You can change Financial Year and Type of Applicable Tax under this tab
You can change PAN, Name, Address or Contact details of the buyer
You can change PAN, Name, Address or Contact details of the seller
You can change the type of property and address of the property
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 approval
Confirmation Screen will appear. The updated details are highlighted in yellow colour. You should review the updated details and click on ‘Confirm the Details‘
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)
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
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.
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