Go AD-Free with CAclubindia PRO for Rs 167/Month Only. Subscribe Now!

TDS excess paid u/s 26QC

TDS 546 views 4 replies

Lila

Job

534 Points Joined April 2018

TDS rate u/s 194IB has been changed from 5% to 2%. One of the known (tenant) has paid TDS @ 5% and filled 26QC basis 5%. Now the problem is 26AS of the tenant is showing only @ 2%. How to get back the balance 3%.

Replies (4)

Rama chary Rachakonda

Master in Accounts & high court Advocate

9025 Points Joined December 2011

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.

Lila

Job

534 Points Joined April 2018

Tenant is deductor, not landlord...

Anyone else on this?

G S Metkar

4 Points Joined July 2023

Hello sir,

Can we revised the 26QC and adjust the excess 3% tds amount to landlord PAN instead of refund process.

Kindly help

G S Metkar

4 Points Joined July 2023

Originally posted by : Gs
	Hello sir, Can we revised the 26QC and adjust the excess 3% tds amount to landlord PAN instead of refund process. Kindly help