TDS deposited against property purchase from NRI

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A buyer deducted and deposited TDS for a property purchase from an NRI seller but encountered issues when filing Form 27Q. The filing was done on February 2nd, 2025, and the system incorrectly prompted filing for Q3 2024 instead of Q4 2024. This has resulted in a notice for defaults, including late filing fees (Section 234E) as the due date was January 31st, 2025. The buyer is seeking solutions as the property registration is imminent. It's suggested that online correction might not be possible, and approaching the jurisdictional TDS officer for cancellation of the demand is recommended.

Ashish Katiyar

Ashish Katiyar (Querist)
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12 February 2025 I am about to buy property from NRI seller and have deducted TDS amount and deposited in advance but while filing form 27Q it was showing that i can file for latest Q3'24 instead of Q4'24 and the date i was filing form was 02 Feb 2025 . Now i have received notice Regular Statement filed is processed with defaults and / or PAN errors u/s 200A. Property registry is about to happen. Any help.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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13 February 2025 what detaulf has notice mentioned?

Ashish Katiyar

Ashish Katiyar (Querist)
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13 February 2025 1. Interest on late deduction/ Collection
2. Late filing fee u/s 234E

Nikhil Kaushik

Nikhil Kaushik (Expert)
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14 February 2025 see if you have filed on 2nd Feb, then 234E would definitely apply as the due date for TDS return for Q3 was 31 January 2025.

With respect to the interest portion, that depends on the data fed in the return. So cannot comment on it.

Ashish Katiyar

Ashish Katiyar (Querist)
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14 February 2025 What is the solution and step should I take.

Ashish Katiyar

Ashish Katiyar (Querist)
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14 February 2025 31 jan 2025 is the date when bank loan demand draft generated but not shared with Seller yet and I have deposited TDS on 2 Feb 2025 and filed form 27Q . It was not showing Q4 which should have been so i have selected Q3. That is what causing all this problem.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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15 February 2025 I do not think this can be corrected online. Because there is barely any method by which you can not have a late payment interest liability in this case. the only thing possible would be to go to the jurisdictional TDS officer and request for cancellation of demand from their end.

And better to do this fast as ideally, you need to have this challan freed up for correct filing for Q4.

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