Master in Accounts & high court Advocate
9615 Points
Posted on 17 March 2025
The TDS rate change from 5% to 2% under Section 194IB has caused a discrepancy in the tenant's 26AS. To resolve this and retrieve the excess 3% TDS: Step 1: Tenant Files Revised 26QC 1. *Revised 26QC*: The tenant should file a revised 26QC, correcting the TDS rate to 2%. 2. *Acknowledgment*: Ensure the tenant receives an acknowledgment for the revised 26QC. Step 2: Claim Refund of Excess TDS 1. *Tenant Files Income Tax Return*: The tenant should file their income tax return, claiming the excess TDS (3%) as a refund. 2. *Rectification of 26AS*: Once the refund is processed, the tenant's 26AS will be updated to reflect the corrected TDS amount. Step 3: Alternative Option - TDS Certificate from Deductor 1. *Deductor Issues TDS Certificate*: The deductor (landlord) can issue a TDS certificate to the tenant, mentioning the excess TDS amount (3%). 2. *Tenant Claims Refund*: The tenant can claim a refund of the excess TDS amount by filing their income tax return. Important Considerations: 1. *Time Limits*: Ensure the tenant files the revised 26QC and claims the refund within the stipulated time limits. 2. *Documentation*: Maintain all relevant documents, including the revised 26QC, acknowledgment, and TDS certificates. Consult a tax professional or chartered accountant to ensure the correct procedure is followed and the excess TDS amount is retrieved.