Form 26QB – Section 194-IA: TDS on Full Consideration Deposited in First Instalment – How to Rectify

TDS & TCS TDS Sections
1

Hi,

Requesting for guidance regarding an issue in TDS deduction in Form 26QB under Section 194-IA.

The full property payment was made in three instalments:

  • First payment – May 2025:
    At this stage, by mistake, 1% TDS on the whole consideration value was deducted and deposited in one go through Form 26QB, instead of deducting TDS only on the instalment amount actually paid.

  • Second payment – October 2025

  • Third payment – March 2026 (now completed)

Issue: Although 1% TDS on the total consideration has already been deposited during the first payment itself, only 1% of the first instalment amount is appearing in the seller’s Form 26AS. This is because, at the time of filing Form 26QB, the “amount paid/credited” was mentioned only as the first instalment amount.

Now my questions are:

  1. Should Form 26QB for May 2025 be revised by increasing the “amount paid/credited” to reflect the full consideration value?

  2. Or should we apply for a refund of the excess TDS deposited and then file fresh Form 26QB for the October 2025 and March 2026 instalments (with applicable interest/penalty)?

  3. What is the legally correct and safest way to regularize this situation?

I would highly appreciate guidance from experts who have handled similar cases.

Thanks in advance.

2

@Sakshi_Jain Requesting for your guidance please.

3

Hey @pushpak,

Welcome to the community!

The safest and most appropriate approach is to submit a correction request for Form 26QB on the TRACES portal, to rectify the amount mentioned in the “Amount Paid/Credited” field.