Regarding default after filing 26QB

If the seller is not paying the demand tax after submission of Form 26QB, you can take the following steps: 1. _Communicate with the seller_: Reach out to the seller and request payment of the demand tax. 2. _Issue a notice_: Send a formal notice to the seller, mentioning the demand tax amount and the consequences of non-payment. 3. _File a complaint_: If the seller still doesn't pay, you can file a complaint with the tax authorities (Income Tax Department) or the relevant legal authorities. 4. _Initiate recovery proceedings_: The tax authorities can initiate recovery proceedings against the seller to recover the demand tax amount. 5. _Withhold payments_: If you have any outstanding payments to the seller, you can withhold them until the demand tax is paid. 6. _Seek legal advice_: Consult a legal expert to explore other available options and ensure you're following the correct procedures. Remember to keep records of all communications and notices sent to the seller, as they may be required during any future proceedings. Additionally, you can also: - _Check the seller's credentials_: Verify the seller's credentials and ensure they are compliant with tax regulations. - _Report to the authorities_: If you suspect any fraudulent activities or tax evasion by the seller, report it to the tax authorities.

Thanks you sir for your detailed response 🙏. By any chance you or your team provide legal assistance or services in this regard?

What if we don't share the TDS certificate with the sellers and ask them to pay only then we will share..Is that a possibility?

That's an interesting question! While it's technically possible to withhold the TDS certificate until the sellers pay, it's not a recommended approach. Here's why: 1. _Legal compliance_: Withholding the TDS certificate may violate tax laws and regulations. 2. _Seller's rights_: Sellers have the right to receive the TDS certificate, which serves as proof of tax deduction. 3. _Payment delay_: Withholding the certificate may lead to payment delays, as sellers may refuse to pay without the certificate. 4. _Damage to relationships_: This approach may damage your relationship with the sellers, potentially leading to disputes and legal issues. Instead, consider the following: 1. _Issue TDS certificate_: Provide the TDS certificate to the sellers promptly, as required by law. 2. _Payment terms_: Negotiate payment terms that work for both parties, ensuring timely payment. 3. _Trust and cooperation_: Foster a collaborative relationship with sellers, built on trust and cooperation. Remember, it's essential to prioritize legal compliance, maintain good relationships, and ensure a smooth transaction process.

A 26QB default notice after filing usually means one of these: interest or penalty not paid, PAN mismatch between buyer/seller/property details, or the challan is mapped to the wrong assessment year.

Here is how to diagnose it step by step:

1. Log in to traces.gov.in with your buyer PAN and check the 26QB challan status under Statements and Forms. If it shows BOCE (Booked with no Certificate Issued) instead of BOMD (Matched and Challan Matched), there is a mismatch.

2. Check the exact demand amount. If it is small (below Rs 1,000), it is likely interest under Section 201(1A) ,  1 percent per month from the date of payment to the seller to the date 26QB was filed, plus 1.5 percent per month from the date of filing to the date of payment into the government account.

3. If the demand is larger, the system may not have matched your 26QB with the seller PAN. Call TRACES helpdesk  with the 26QB acknowledgment number and ask for a challan verification.

For most default notices, the resolution is paying the interest component via a new 26QB challan (selecting the same assessment year and using the original 26QB token number as reference). If you cannot resolve it online, a letter to the Assessing Officer under Section 201 with the original challan proof is the next step.

This [TDS mistakes guide](https://taxgarden.in/blog/tds-mistakes-that-trigger-notices-pan-section-challan-return-errors-2026) covers the common 26QB errors and the exact steps for correcting default demands.