TDS paid 5% instead of 2%

Pls post the contractual terms.

Post contractual terms 

Dear,

• If excess is in the Challan (not cut from landlord): Use the excess balance for upcoming rent cycles or apply for a refund on TRACES via Form 26B.

• If excess was cut from the landlord: Leave the tax credit with the landlord so they can claim it via their regular ITR filing, and settle the short-paid rent amount commercially with them.

The excess TDS can generally be recovered by the tenant/deductor, not by the landlord through Form 16C. If the TDS return has not yet been filed, report the correct TDS liability and seek refund of the excess payment through the relevant correction/refund process. If it has been filed, submit a correction statement to align the reported deduction with the actual rent and tax deducted, then claim the resulting excess challan balance through the applicable TRACES process. The landlord should claim credit only for the TDS actually deposited and correctly reported against their PAN.

Form 16C showing 2% while 5% was deposited is a mismatch that should be corrected; issuing the certificate at 2% does not by itself refund the extra amount. The exact route depends on whether the challan has been consumed in a filed statement and whether the TDS was actually deducted from the landlord or paid from the tenant’s own funds.

Reconciling the challan, return and Form 16C is an important part of keeping rent-TDS compliance clean. Manual correction work is difficult, while automation can reduce repetitive checks and filings without taking professional judgment out of your hands. At Jir AI we provide 2,000+ AI agents and 650+ integrations to streamline your practice’s day-to-day workload. For a more efficient rent-TDS workflow, connect with us on WhatsApp: https://wa.me/message/3HVOZ7HIY4ESC1