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Property Purchase - TDS issue - Correction Statement

08 November 2019

After purchasing a property from three co-owners (each having share in the ratio of 50:25:25), I deducted 1% TDS and remitted to IT at 1/3^rd (in the ratio of 33.33 : 33.33 : 33.33) equal share for each of them (by mistake instead of in their actual shares) under their respective PANs. When Rectification Statement was effected, no default has been observed by the Dept. in respect of 2^nd & 3^rd co-owners, but default has been observed in respect of the 1^st co-owner and I have been demanded to pay short deduction and remit the amount with interest. Though I have not caused any income leakage to the Government, how to get the issue virtually solved?

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7 Replies

rama krishnan (12234 Points)
Replied 10 November 2019

According to your share percentage, you should've deducted tax at source on 50% of consideration value. but you have deducted tds only on 33.33% of consideration. hence the demand notice

Surjeet Negi (947 Points)
Replied 10 November 2019

If the buyer/deductor finds that the default has arisen due to wrong data entry in his 26QB statement, then the functionality for online correction of Form 26QB is now available to the deductors (buyers). For that the buyer can log in to www.tdscpc.gov.in and make the online correction request in the respective fields.

further if buyer correct the statement without DSC, then in such case AO approval is required. you have to visit the concerned AO for the same.

let me know any further concern.

regards

P.S. Chandrasekhar (7 Points)
Replied 10 November 2019

Sir,

I am not commenting upon the demand notice.

Originally TDS of Sale Consideration was deducted at 33% for each of the 3 Co-Sellers. I filed Correction Statement for appropriating 50% for the 1st Seller and 25% for the 2nd Seller and 25% for the 3rd Seller.

My problem is how to get adjusted the excess TDS amounts accounted for under the PAN of the 2nd & 3rd Sellers (both brothers) towards the short TDS observed (and claimed under the demand notice) under the PAN of the 1st Seller (mother of the 2nd & 3rd Sellers).

Kindly enlighten.

Surjeet Negi (947 Points)
Replied 10 November 2019

In this case you should bifurcate the TDS correctly using edit deductee feature while submitting the correction statement. there is option on correction facility.

you can also read the FAQ on Tds.cpc website for detailed procedure.

trust the above suffice

P.S. Chandrasekhar (7 Points)
Replied 10 November 2019

As already mentioned by me, Correction Statement was once filed. Only thereafter I have received the demand notice. Is there any provision to file further Correction Statement, for setting-off the short TDS in the case of one seller from the excess made in the case of other co-sellers?

Surjeet Negi (947 Points)
Replied 10 November 2019

I think there is no bar on filing correction statement

P.S. Chandrasekhar (7 Points)
Replied 10 November 2019

I am told that TDS amount once remitted is always remitted and there is no re-adjustment provision to set-off the shortage under one PAN from other PANs, though they are all connected with one transaction. As the purchaser, I am very much concerned, though I have not caused any income leakage to the Govt. Can anybody give a working solution out of his/her practical experience in a similar issue?