Correction in 26QB filed for late TDS filing

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Vivek Mittal

25 Points Posted on 19 August 2025

Hi,

I was supposed to pay a TDS for a payment that i had made to a builder by 31st July However, i forgot and made this payment on 1st August.. with following details:

Payment made : INR 714568

Date of payment : 15 June 2015

Total TDS : INR 7150

I received a default notice from traces which suggested an interest and some fine on Aug 7. So i made another payment using form 26QB with the following details:

Payment made : INR 714568

Date of payment : 15 June 2015

Total TDS : INR 1

Interest : 320

Fine : 400

Total payment: 721

However, i again got a default notice and it seems that traces system is treating this as a separate payment to builder and is not able to reconcile between these 2 payments.

How do i resolve this?

regards,

Vivek Sheel Mittal

Replies (2)

Quick Summary

This discussion addresses a common issue where a taxpayer filed Form 26QB late for a TDS payment made to a builder. After receiving a default notice, a second 26QB was filed including interest and late fees. However, the TRACES system failed to reconcile these two filings, treating the second one as a separate transaction and indicating a shortfall. The user is seeking guidance on how to resolve this discrepancy and correct the errors.

Rama chary Rachakonda

Master in Accounts & high court Advocate

7021 Points Posted on 20 August 2025

Explain the situation about the default notice and how the system is not reconciling the payments.

Vivek Mittal

25 Points Posted on 20 August 2025

Thanks. Here is my observations:

The first notice, based on first 26QB challan, indicate a late payment and suggests a interest of INR 319 and a late fee/fine of INR 400.
The second notice, based on second 26QB challan, adjusts my entire payment of INR 721 (even though i mentioned a TDS = 1, interest = 320, Late fee = 400 in my 26QB filing) and notes a shortfall of 7150-721 = INR 6429. It also further mentions additional interest and late fee to be deposited for the TDS shortfall.

So i conluded that when traces system processes my second 26QB, it does not understand that i have already made a TDS payment for the same payment to builder (even though i have mentioned that amount and date of payment) and treats this as a new payment to builder.

I hope that explains.

regards,

Vivek Sheel Mittal