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How to utilize partially consumed challan 26QC for future TDS deposit on house rent payment

Nitin Pathak (General Manager) (30 Points)

23 January 2025

I am a tenant. I submitted challan 26QC for TDS deposit on house rent payments for the period of Apr-2024 to Sep-2024 at 5%. It was declared that TDS will be 2% Oct 2024 onwards so I chose 5% for Apr-2024 to Sep-2024 and 2% for Oct-2024 to Dec-2024.

However, the income tax department has considered only 2% even for the duration of Apr to Sep. This was my challan 26QC is partially consumed and the amount is still pending in that challan.

Can I further use this challan and consume the amount for future TDS deposit house rent payment lets say for Jan2025 to March2025 and also for duration beyond Apr2025?

If yes, how can I do this?

Thanks

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5 Replies

Rama chary Rachakonda (Master in Accounts & high court Advocate) (8540 Points)
Replied 23 January 2025

You can use the partially consumed Challan 26QC for future TDS deposits, but there are some considerations to keep in mind.

Firstly, since the income tax department has considered only 2% TDS for the entire period, you'll need to ensure that the remaining amount in the challan is utilized correctly.

To use the remaining amount in the challan, you can follow these steps: -

*Verify the challan details*: Check the challan status on the TIN NSDL website to confirm the remaining amount.¹ -

*File a revised Form 26QC: If necessary, file a revised Form 26QC to reflect the correct TDS amount for the period April 2024 to September 2024.² -

Use the remaining amount for future TDS deposits*: Once the revised Form 26QC is filed, you can use the remaining amount in the challan for future TDS deposits, such as for the period January 2025 to March 2025.

Nitin Pathak (General Manager) (30 Points)
Replied 23 January 2025

Suppose if I want to deposit TDS for Jan-Feb-Mar 20205 now and want to ultilze the amount which is unutilized in previous challan 26QC, How can I use its reference in my challan 26QC for Jan-Feb-Mar so that income tax department can use that remaining amount in my new challan 26QC filings?

I don't think there is any provision to include previous challan 26QC reference, so that its amount can be utilized.

Rama chary Rachakonda (Master in Accounts & high court Advocate) (8540 Points)
Replied 23 January 2025

You're correct that there isn't a direct provision to include a previous Challan 26QC reference in a new challan to utilize the remaining amount.

Alternative Solution To utilize the remaining amount in the previous Challan 26QC, you can follow these steps:

1. *File a revised Form 26QC*: For the previous period (Apr-Sep 2024), file a revised Form 26QC to reflect the correct TDS amount.

This will help adjust the excess amount deposited.

2. *Claim the excess amount as refund*: Once the revised Form 26QC is processed, you can claim the excess amount as a refund by filing your income tax return (ITR).

3. *Deposit new TDS for Jan-Feb-Mar 2025*: For the new period (Jan-Feb-Mar 2025), deposit the TDS using a new Challan 26QC.

Unfortunately, you cannot directly utilize the remaining amount in the previous Challan 26QC for the new period.

However, by following the above steps, you can claim the excess amount as a refund and then deposit the new TDS for the current period.

NARENDRA (ACCOUNTS MANAGER) (2181 Points)
Replied 25 January 2025

Dear Nitin,

First of all , you do not mention which section you deposited the challan against rent, i,e, there are 2 options 1 is 194IA, another 1 is 194IB . I am sure you had chosen the right option , but then there is a little bit of confusion why the department considered only 2% for the period Apr to Sep. so you should check again which section you were choosing. . If it is all correct you may utilise the balance amount of the TDS challan in upcoming TDS returns.

1 Like

TANYA JAIN (2 Points)
Replied 31 March 2025

I had paid rent for 11 months. April 2024- February 2025 . I filed 26qc under 194ib and calculated the figure by considering 5% from April 2024-September 2024 and 2% from October 2024 to February 2025. In 26QC when it asked rate of interest there was no seperate column to mention these two rate of interest so I updated it to 2% (current rate)and manually entered the same amount and paid it in February 2025.Now my traces shows partially consumed for 11 months @ 2% the remaining is unutilised credit . What should I do for this rectification? If I file another 26qc for April to September there will be a penalty for delay in payment