Form 26QB – Section 194-IA: TDS on Full Consideration Deposited in First Instalment – How to Rectify

Hi,

Requesting for guidance regarding an issue in TDS deduction in Form 26QB under Section 194-IA.

The full property payment was made in three instalments:

• First payment – May 2025:
  At this stage, by mistake, 1% TDS on the entire consideration value was deducted and deposited in one go through Form 26QB, instead of deducting TDS only on the instalment amount actually paid.
• Second payment – October 2025
• Third payment – March 2026 (now completed)

Issue: Although 1% TDS on the total consideration has already been deposited during the first payment itself, only 1% of the first instalment amount is appearing in the seller’s Form 26AS. This is because, at the time of filing Form 26QB, the “amount paid/credited” was mentioned only as the first instalment amount.

Now my questions are:

1. Should Form 26QB for May 2025 be revised by increasing the “amount paid/credited” to reflect the full consideration value?
2. Or should we apply for a refund of the excess TDS deposited and then file fresh Form 26QB for the October 2025 and March 2026 instalments (with applicable interest/penalty)?
3. What is the legally correct and safest way to regularize this situation?

I would highly appreciate guidance from experts who have handled similar cases.

Thanks in advance.