Provisions of Online Correction in Form 26QB

How Buyers can Correct Form 26QB Online used in Sale of Property u/s 194-IA?

Section 194-IA of Income Tax Act, 1961 explains the transaction rules applicable during the sale of any immovable property (agricultural land is not included), such as, building (whole or part) or land. As updated in Finance Bill of 2013, which was in effect from June 1, 2013 onwards, a clause in Section 194-IA stated that TDS charge @1% over the whole selling price should be deducted by the buyer, whenever, he/she purchases a property of worth more than INR 50 lakh. Buyer should make this TDS payment as deducted in the rate as mentioned in Section 194-IA through the PAN based (minor head 800) Challan-cum-Statement Form No. 26QB within 30 days from the end of the month in which TDS was deducted.

To make it a more systematic error free procedure, Tax Department allows buyers to make valid corrections in the Form 26QB they have submitted.

Provisions of Online Correction in Form 26QB                                                  

Till FY 2013-14, form 26QB could not be revised to rectify any kind of errors in information. To make it possible, IT Department of India initially allowed buyers to make corrections in Form 26QB from FY 2014-15 onwards through AO’s approval. A much hassle free option, as available from 29th February 2016 onwards, buyers registered in TRACES can make online correction in Form 26QB by submitting request for ‘26QB correction’ under ‘Statements/Forms’ Tab.

Note: This correction can be done by the buyers only, after acquiring a ‘No Objection Certificate (NOC)’ from the seller in the form of an original affidavit.

For correcting Form 26QB, the registered buyer has to log in to his/her TRACES account and put correction request in ‘Track Correction Request’ option under ‘Statements/Forms’ Tab.

Permitted Areas of Correction in Form 26QB are:

  • Buyer PAN (Seller’s/New Buyer’s Approval Required)
  • Seller PAN (Seller’s Approval Required)
  • Address of Buyer/Seller (Auto Approved)
  • Financial Year (FY) (Auto Approved with buyer’s digital signature only)
  • Property Details (including property value) (Auto Approved)
  • Date of Payment/Credit (Auto Approved with buyer’s digital signature only)
  • Purchase amount (Auto Approved with buyer’s digital signature only)
  • Date of TDS Deduction (Auto Approved with buyer’s digital signature only)

 

Note: Request Status changes in ‘Track Correction Request’ option under ‘Statements/Forms’ Tab as per the correction processing stage, which the buyer is allowed to track with the help of Correction ID as generated for the Form 26QB requested for correction.

 

Verification is mandatory after the buyer completes Form 26QB corrections request. One of the given options can be availed:

  • If the seller is known and the buyer has registered digital signature in the TRACES portal, correction can be submitted for verification through digital signature/Net Banking.
  • In case, buyer’s digital signature is not yet registered, AO (Assessing Officer) Approval can be obtained for verification.
  • If seller is not traceable and buyer’s digital signature is not registered in TRACES portal, corrections can be verified through AO’s approval.
  • If buyer/seller is traceable but buyer’s digital signature is not registered in TRACES portal, corrections can be verified through Net Banking/AO’s approval.

Note:

  1. If correction is submitted to be verified through AO’s Approval, jurisdictional AO would be decided based on jurisdiction of the buyer.
  2. In case buyer’s digital signature is not registered, these documents should be submitted for AO’s Approval:
    • Acknowledgement of Form 26QB correction with ID proof
    • PAN Card proof
    • Property Transfer documents
    • Payment proof that is made through Form 26QB Challan
  3. Net Banking option for verification of Form 26QB correction request does not require buyer’s digital signature or AO’s approval.

 

26QB Correction

  1. Login to TRACES website https://www.tdscpc.gov.in/app/login.xhtml
  2. Request for Correction under “Statements/ Forms”
  3. Relevant “Assessment Year”, “Acknowledgement Number” and “PAN of Seller”
  4. Check Requested Status in “Track Correction Request”
  5. Track Correction Request” option under “Statements/ Forms” tab and initiate correction once the status is “Available”.
  6. Click on “Available” status to continue.
  7. CIN details as per challan paid against 26QB form
  8. Financial Year and Tax applicable” option to change Financial Year in 26QB.
  9. “Confirm details” after Submission of Correction Statement. 
  10. Submit Request” to Submit Correction Request.
  11. Registered digital signature in the TRACES portal, correction can be submitted for verification through digital signature/Net Banking.
  12. In case, buyer’s digital signature is not yet registered, AO (Assessing Officer) Approval can be obtained for verification.