Tds on sale of property pan interechanged mistake

Subject : Standard operating procedure for Form 26QB challan correction

A number of request are being received from taxpayers for enablement of correction on challan in Form no. 26QB relating to TDS on sale of property (minor head 800). Form no. 26QB is an internet based PAN challan containing details of buyer, seller, property being sold, sale consideration, tax deposit details etc. being an internet challan no correction can be made by bank branches though existing RT18 mechanism on Form 16QB similarly correction facility has also not been allowed to assessing officer.

In order to address the issue of bonafide mistakes in the challan in Form 26QB and to streamline the procedure for enabling correction on Form 26QB the following standard operating procedures shall be followed:

I. Correction will only be allowed on the following challan attributes

a. Buyer PAN

b. Seller PAN

c. Assessment year

d. Major head [i.e. 20(corporate) and 21(non-corporate)]

II. No correction will be allowed for change of minor hear (i.e. from minor head 800 to other taxes having minor heads 100, 200, 300, 400 etc. or vice-versa) or amount

III. The buyer of the property will submit an application requesting for correction in Form 26QB challan to the PAN Assessing Officer as per the jurisdiction of the buyer’s PAN

IV. The buyer will enclose a copy of the no objection letter from the seller on an affidavit (in original) along with such application.

V. The application along with affidavit will be submitted to the jurisdictional POIT/CIT of the AO through Range Head

VI. The POIT/CIT will enclose the application as recommended/not recommended with reason in either case and forwarded the same to the Directorate of System

VII. On receipt of application the Directorate of System will process the application as per defined rules on case to case basis. The correction made, if any will be reflected in the Form 26AS of the seller.