Tds

This query is : Resolved

abhimanyu (Querist)
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04 April 2018 A joint property was held by two persons say A and B, who sold it to 4 persons say D,E,F and G, who were joint buyers. D and E deposited TDS of their respective shares in the Account of A and F and G deposited TDS of their respective shares in the Account of B with the result that whole TDS deducted by them has been deposited with Income Tax.

IS IT A VALID TRANSACTION PARTICULARY WHEN THE INCOME TAX HAS RECEIVED THE WHOLE AMOUNT OF TDS.

IF IT IS NOT SO HOW RECTIFICATION CAN BE DONE?.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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04 April 2018 Not done properly. Correction required. Pl see https://www.charteredclub.com/revise-form-26qb/

abhimanyu

abhimanyu (Querist)
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04 April 2018 Thanks Sir, in this particular case how correction can be be made as this type of situation does not appear in the link provided by you.

Asha Kanta Sharma

Asha Kanta Sharma (Expert)
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27 July 2025 In this case, **TDS under Section 194-IA (on sale of immovable property)** has been **deposited incorrectly** — the buyers deposited TDS for their respective shares but credited it to the **wrong seller**.

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### 🔍 Issue:

* **A & B** are joint sellers.
* **D, E, F & G** are joint buyers.
* D and E credited their TDS shares **to A's PAN**, F and G credited to **B's PAN**.
* But the property was jointly held, and each seller should have received **TDS proportionate to their share from each buyer.**

> So, instead of 4 Form 26QBs (1 per buyer-seller pair = 2 sellers × 4 buyers = 8 forms), **only 2 TDS entries were made**.

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### ⚠️ Why this is an issue:

* Incorrect mapping of **TDS against PANs** will lead to:

* **Mismatch in Form 26AS**
* Problems in **capital gains computation**
* **Notices or demand** from Income Tax Department due to incorrect credit

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### ✅ What should have happened:

* Each buyer should file **two separate Form 26QBs**, one for each seller, with **respective proportionate TDS** (usually 0.75% of their share if 2 sellers involved).

**For example:**
If sale value = ₹1 crore (50L to each seller)
Then each buyer paying ₹25 lakh (¼ share), should file:

* Form 26QB for ₹12.5L to A → TDS ₹12,500
* Form 26QB for ₹12.5L to B → TDS ₹12,500

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### 🛠️ **Correction Procedure**:

Unfortunately, **Form 26QB cannot be revised online directly**. But you can proceed as follows:

#### Step 1: **Submit a correction request at TIN-NSDL**

* Go to your **TDS CPC login** or visit a **TIN-FC (Facilitation Centre)**
* Submit a **request for correction** of Form 26QB
* You will need:

* PAN of buyer and seller
* Acknowledgment number of original Form 26QB
* Proof of payment
* Sale deed
* Justification for correction (mention joint ownership)

#### Step 2: **Correction via AO (Assessing Officer)**

If online or TIN-FC doesn't work, write to the **Assessing Officer** explaining:

* The incorrect TDS mapping
* That total TDS has been deposited, only credit mismatch exists
* Attach: Sale deed, TDS payment challan, PANs of all parties

Request **manual correction** in their system (this is accepted in such joint ownership TDS mismatches).

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### 📌 Practical Tip:

* Going forward, **file 26QB per seller-buyer pair**
* Always verify PAN entries and amounts **before filing Form 26QB**

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Would you like a sample letter format to AO for requesting correction?

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