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TRACES : Form 26QC Correction using DSC or AO Approval

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Sakshi Shah

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Form 26QC
TDS
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TRACES
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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 tenant pays rent exceeding Rs. 50,000 per month to the landlord, he/she deducts TDS u/s 194IB. The tenant files Form 26QC and issues Form 16C to the landlord. The TDS Return i.e. Form 26QC is processed by CPC-TDS. If the Statement Status of Form 26QC is ‘Processed with Default’, the tenant should:

The Tenant registered on TRACES can submit Correction Request for Form 26QC from FY 2017-18 onwards.

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Steps for Form 26QC Correction on TRACES – DSC / AO Approval

Step 1: Log in to TRACES – Enter User Id, Password, PAN and captcha

TRACES - Login Page for Taxpayers

Step 2: Go to Statements / Forms > Request for Correction

TRACES - Form 26QC Correction - Navigate

Step 3: Select Form Type – 26QC to submit the Correction Request

TRACES - Form 26QC Correction - Select Form Type

Step 4: Review the checklist and click on ‘Proceed

TRACES - Form 26QC Correction - Review Checklist

Step 5: Select the ‘Financial Year’ from the drop-down list. Enter ‘Acknowledgement Number‘ and click on ‘Request for Correction’

TRACES - Form 26QC Correction - Enter Financial Year and Acknowledgement Number

Step 6: 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 26QC Correction Request - Request Number

Step 7: Go to Statements / Forms > Track Correction Request

Step 8: Enter the Request Number or Request Date or View All. Click on ‘View Request’. 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

If the status is 'Submitted', please wait for 24 to 48 hours for the status to change to 'Available'
Tip
If the status is 'Submitted', please wait for 24 to 48 hours for the status to change to 'Available'
TRACES - Form 26QC Correction - Search using Request Number

Step 9: Enter Challan Details of any challan paid while filing Form 26QC. Click on ‘Proceed

TRACES - Form 26QC Correction - Enter Challan Details

Step 10: Details as per Form 26QC filed will appear on the screen. Click on ‘Edit’ for correcting the details

TRACES - Form 26QC Correction Request - Form 26QC filed details

Step 11: The taxpayer can make changes in the following fields:

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 26QC Correction - AO Approval for Correction

Step 12: Make the required correction. Click on ‘Save‘. Click on ‘Submit Correction‘ once you make all the corrections

Tenant Details

You can make corrections in the PAN, Name or Address of the Tenant

TRACES - Form 26QC Correction Request - Tenant Details

Landlord Details

You can make corrections in the PAN, Name or Address of the Landlord

TRACES - Form 26QC Correction Request - Landlord Details

Rented Property Details

You can make correction in the Type of Property and Address of the Rented Property

TRACES - Form 26QC Correction Request - Rented Property Details

Amount Paid / Credited

You can make corrections in the amount paid or amount credited as rent. If amount paid or amount credited is updated, correction submitted will require Landlord’s approval.

TRACES - Form 26QC Correction Request - Amount Paid or Credited Details

Step 13: Confirmation Screen will appear. The updated details are highlighted in yellow colour. You should review the updated details and click on ‘Confirm the Details

TRACES - Form 26QC Correction - Confirmation Page

Step 14: Confirm whether the PAN of Landlord is known or unknown. Click on ‘PAN of Landlord’ if the PAN is known. Click on ‘AO’ if the PAN is unknown

TRACES - Form 26QC Correction - PAN of Landlord

If PAN of Landlord is UnknownClick on ‘AO’

TRACES - Form 26QC Correction - Disclaimer for AO Approval
TRACES - Form 26QC Correction - AO Details

If PAN of Landlord is KnownClick on ‘PAN of Landlord’

TRACES - Form 26QC Correction - PAN Details from PAN database
TRACES - Form 26QC Correction - Validate Correction Request

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

TRACES - Form 26QC Correction - Disclaimer for AO Approval
TRACES - Form 26QC Correction - AO Details

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

TRACES - Form 26QC Correction - Select DSC

Step 15: 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’

TRACES - Form 26QB / 26QC Correction Request - Request Number

Step 16: Go to Statements / Forms > Track Correction Request. Here are the types of status of the Correction Statement.

FAQs

What is Form 26QC?

Under section 194-IB of the income tax act, if any individual or HUF to whom tax audit is not applicable makes payment of rent to a resident landlord exceeding Rs. 50,000 per month, then he/she needs to deduct TDS from rent and needs to file Form 26QC. TAN is not compulsory for filing Form 26QC

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 TDSCPC

Who needs to file Form 26QC?

The Form 26QC needs to be filed by the tenant of the property, who is making rent payments to the resident landlord. TDS is deducted at the rate of 5% on rent payments made by the tenant.  

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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