Dear Sir/ma'am,
This is regarding filing of Form 26QC which is challan cum return used to report TDS on rent payments.
As per 194 IB (TDS on rent to resident exceeding INR 50,000), the rate of TDS was 5% and subsequently based on the amendment TDS rate is reduced to 2% effective from October 01,2024,
Since the act allows tds to be deducted in the end of the year and remit, we filed form 2 different 26QC's one with 5% TDS rate till September 30,2024 and another with 2% TDS rate from 1st October 2024, both in March 2025.
On donwloading form 16C, TDS is automatically getting computed at 2%. We were told by the department that this is because the date of payment or credit mentioned in the 26QC for both TDS @ 5% and TDS @ 2% is March 01,2025.
We were giving the resolution to correct the TDS return and enter date of payment or credit as September 30,2024 for deducting TDS @ 5%. If we do that, we will be under default for not filing TDS return within 30 days,
The other option given was to claim a refund of the remaining paid amount by considering TDS for entire year at 2%. This doesn't safeguard us from future demands.
If anybody has a solution to this, or a different apporch or stance taken, please let me know at the earliest.
CAclubindia
