Need Help with TDS Deduction on Rent – Discrepancy in TDS Credit

The discrepancy in TDS credit on the property owner's side, as reflected in Form 26AS, can be attributed to several possible reasons: Possible

Reasons for Discrepancy 1. *Incorrect reporting*: Ensure that you're reporting the correct values in the Income Tax e-filing portal, specifically in the fields "Value of rent paid in the last month" and "Amount paid/credited".

2. *TDS calculation error*: Verify that the TDS calculation is correct. You mentioned deducting 5% TDS, but the discrepancy suggests a possible miscalculation.

3. *Unclaimed challans*: As your CA suggested, there might be unclaimed challans that are causing the discrepancy. Check the IT portal for any unclaimed challans.

4. *Automatic calculations*: The IT portal might be performing automatic calculations that are causing the discrepancy.

5. *Technical glitches*:

I am just updating my findings:

1) TDS on rent has been changed to 2% (from earlier 5%) with effect from 1st Oct 2024. I had deducted at 5% and the system has takenn just 2%. That is reason for mismatch. It looks like I have to apply for refund of unclaimed challan.

2) The field1 and field 2 in my post shoud be the same. This makes no sense but then many things dont. The resolution is to update Form 26 challan and hopefully this will get self corrected.

Hi, I am also facing the same issue. I paid TDS @ rate of 5%, but my landlord is only seeing 2% TDS in his AIS. Could you please share how you applied for refund of unclaimed challan. Please share your email/contact if possible

Hi, I faced same issue. I deducted tds for entire year of 2%. Deducted tds from actual rent on March month with form 26qc. But when a 16c is available,  I saw that only 2% on last month rent is deducted, where as full amount is paid during tds payment. Any suggestions which field to modify for tds correction in traces?

Ankush/Yerra

If you are not familiar with TRACES, I would suggest consulting a CA like I did.
YOu need to first file for rectification in case you made the same mistake I did viz   in the field Amount paid/credited  .

You need TRACES login. The landlord will get an approval request and needs to approve it.

 If you have not made this mistake and the problem is just the 2%/5% one then you dont need to rectify challan but claim refund of excess tax. AGain this is in TRACES. YOu need to print out and sign this form and hand it over at the office of your assessing officer. IN a day ot two you will be asked for the following details

<<<<
With regard to your application for Refund related request, you are required to furnish the following documents to this office address, O/o- ITO(TDS), Ward-XXXXXX, HMT Bhavan, XXXXXX road, Bengalore-32 or through return mail.

 1. Covering letter for refund mentioning the reason for refund request.

 2. If refund arises due to excess payment of TDS on property, enclose the Sale deed/ cancel Agreement & 26B Acknowledgement

 3. Copy of challan paid

 4. PAN copy

 5. Bank statement- Showing the transaction.

 6. original indemnity bond and cancelled cheque

 7. Form 26B original.

 8. Any other relevant document in support of your refund claim.
>>>>>

YOu can download indemnity bond template from google search

YOu need to send this by speed post to the address mentioned in the mail. Remember to sign the indemnity bond and all papers.

Hope this helps

Thanks @ Deepak Mishra.

The issue is with in the field Amount paid/credited. Earlier I mentioned, amount after deduction of tds from the last month rent in this field. eg: amount paid/credited = value of rent paid in last month - 
tds amount. Hence they considered tds of 2% on the amount paid/credited field. 

I should suppose to mention in the following way. 

amount paid/credited = total value of rent paid to landlord for full financial year

thanks for your reply

@ kishore yerra

As I mentioned,
You need to make a rectification challan. System will correct it,
The problem is that this change needs to be approved by the landlord for which they need a Traces login. SO give them a headsup.

You should enter both fields as pre-tax rent amount (₹1,000), excluding TDS.

papa louie

Incorrect entry will result in the system recording the wrong TDS amount to the landlord. 

I again need one more help from this forum on the existing issue. I filed rectification request and land lord also accepted this request from his tds login. Since I do not have DSC certificate, for review is went to AO. It is with him from past 10days. Do I need to do any thing here. Status is showing pending from AO approval. Does any one of you face the earlier?

GIve it some more time. If AO is in same city, you could also try to visit.

Thanks Deepak Misra for prompt replying.

Hi,

You need TRACES login. The landlord will get an approval request and needs to approve it. If you have not made this mistake and the problem is just the 2%/5% one then you dont need to rectify challan but claim refund of excess tax. AGain this is in TRACES. YOu need to print out and sign this form and hand it over at the office of your assessing officer.

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Hi,

You need TRACES login. The landlord will get an approval request and needs to approve it. If you have not made this mistake and the problem is just the 2%/5% one then you dont need to rectify challan but claim refund of excess tax. AGain this is in TRACES. YOu need to print out and sign this form and hand it over at the office of your assessing officer.

head basketball game