Refund of TDS on cancelled property deal

This query is : Resolved

Apeksha Jain (Querist)
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13 March 2025 I followed the below process for claiming TDS refund on cancelled property deal:
In case of refund of TDS for Form 26QB, the buyer/deductor has to log-in to TRACES portal as a ‘Taxpayer’.
Step 1: Log in to TRACES – Enter User Id, Password, PAN and captcha
Step 2: Navigate to Statements / Forms > Request for Refund.
Step 3: Read the Refund Checklist and click on Proceed
Step 4: Select one of the reasons and click on ‘Add Challan‘
Step 5: Mention the reason for raising the refund request in the space provided.
Step 6: Enter the challan details. Click on ‘View Challan Details’
Step 7: Click the Challan Consumption Details
Step 8: Tick the appropriate checkbox and click on ‘I Agree‘
On the landing page, One can Add Challan or Remove the Added Challan.
Step 9: Click on 'Proceed' to continue.
Step 10: Enter the Communication Address and Bank Address
Step 11: Verify the details of Authorised Person. Click on 'Proceed' to continue.
Step 12: On next page, Click on ‘Submit Refund Request‘
Step 13: Validate 26QB Refund Request with DSC. Click on 'Proceed' to continue.
Success message will be displayed on the screen. One can Preview and Print Form 26B Acknowledgment.

HOWEVER,
On entering challan details, when I click 'View Challan details', challan details are not displayed. Instead there is a remark in red "Refund request can be submitted for OLTAS challan (s) where available amount in challan is equal to or greater than ₹1." Please guide. Do I need to revise my 26QB first, If yes, what changes should be made in that

Asha Kanta Sharma online

Asha Kanta Sharma online

(Expert)
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12 August 2025 Thanks for sharing the detailed steps and the issue you’re facing on TRACES while claiming a refund of TDS on a cancelled property deal.

The issue:
"Refund request can be submitted for OLTAS challan(s) where available amount in challan is equal to or greater than ₹1."
And Challan details are not displayed on clicking 'View Challan details'.

What this means:
The challan against which you want to claim refund does not show any available balance (i.e., it is fully consumed against the deducted tax).

TRACES allows refund request only if the challan has some unutilized amount, which can be refunded.

Possible reasons & solutions:
1. 26QB challan already fully utilized
When TDS is deposited through Form 26QB, the amount is immediately credited to the deductee’s TDS ledger.

If the challan amount has been fully adjusted (for example, utilized for TDS credit), then the "available amount" in the challan is zero, so no refund request can be raised directly.

2. Check Form 26QB / 27Q submission status
Verify if Form 26QB was filed correctly with the correct PAN and amount.

If the property deal was cancelled before registration, but 26QB was filed and challan was deposited, you may have to file a correction or cancellation request for Form 26QB.

3. Revise Form 26QB?
There is no formal "revision" of 26QB, but you can file a correction (if error in PAN or other details).

If the transaction was cancelled, and the deduction was not warranted, you can file Form 26QB for NIL payment or request the deductor to file a rectification.

Alternatively, if no correction is possible, follow refund procedure for excess TDS.

4. File TDS refund application via Form 24G or TDS Refund Application
If the challan is fully consumed, but TDS refund is due due to cancellation, you might need to apply for TDS refund through the Income Tax Department’s offline or online process.

Contact your jurisdictional Assessing Officer or TDS cell for manual refund application.

5. Contact TRACES support/helpdesk
Sometimes, technical glitches or delay in updating the challan status cause this issue.

You can raise a grievance on TRACES portal or contact the TDS helpdesk.

Recommended next steps for you:
Check the challan status on TRACES:

Log in to TRACES > View Tax Credit (Form 26AS) to confirm how the TDS amount is reflected.

Confirm if any correction of 26QB is possible or required.

If no correction possible, contact the deductor (buyer) to file correction or refund request.

Raise grievance on TRACES portal for refund issue if challan amount is not showing.

If urgent, approach Assessing Officer with supporting documents (cancelled deal proof, payment challan).

Summary:
The error message shows that challan is fully utilized, no refundable balance.

Usually, you don’t "revise" 26QB, but corrections can be filed.

For refund, challan must have unutilized balance, else manual refund procedure is required.

Coordinate with deductor or tax authorities for next steps.

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