Refund of TDS for failed sale of property

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This query is : Resolved

Quick Summary

If you've paid TDS for a property purchase that was subsequently cancelled, you may be eligible for a refund. Although the TRACES portal might show the challan as 'consumed', you can still request a refund by cancelling the Form 26QB. Select the 'Deal Cancelled' option and await seller confirmation. If you encounter issues or the seller has already received the refund, consider filing a grievance with supporting screenshots.

Prashanth Cm

Prashanth Cm (Querist)

11 September 2024 I have made a TDS payment before going with the purchase of property.
But the sale was called off later and am trying to get the refund for the TDS.

But while trying to fetch challan details from TRACES site, am getting below error.

"Refund request can be submitted for OLTAS challan (s) where available amount in challan is equal to or greater than ₹1. "

This means that the amount is already credited to seller PAN.
In this case, how to get my refund?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

11 September 2024 Refer: https://taxguru.in/income-tax/e-tutorial-request-26qb-refund.html

Prashanth Cm

Prashanth Cm (Querist)

11 September 2024 Thanks for your response, but above link doesnt have solution to my problem.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

11 September 2024 While paying TDS amount to ITD, had you submitted form 26QB?
If yes, when you cancelled the deal the same challan needs to be cancelled.
The link provided above is for its cancellation.

Prashanth Cm

Prashanth Cm (Querist)

11 September 2024 Yes, i have submitted form 26QB. when i check the status of the challan, it says fully consumed. The TDS payment was done one month back.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

11 September 2024 It may be consumed, but the form filer (property purchaser) can cancel the form itself. Follow the steps as per the link provided.
In step 4 select the option DEAL CANCELLED.
The confirmation of seller would be required.
For more details refer: https://www.youtube.com/watch?v=JZYbu0g9j_w

Prashanth Cm

Prashanth Cm (Querist)

11 September 2024 I have selected this option
- I have cancelled my property/rented property deal/Contract(s) and Professional Service(s)

Even after this, same error. It is showing up in my form 26AS as well.
Looks like current application not accepting if the challan is already consumed.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

11 September 2024 Check with seller if he has already received refund of it.
If no, then in that case file Grievance along with screenshot.

Message likes : 1 times

Prashanth Cm

Prashanth Cm (Querist)

11 September 2024 Thanks for your help :)

Message likes : 1 times

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

12 September 2024 You are welcome.

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