TDS Return Filing Form 26Q

TDS & TCS 1961 TDS/TCS Return Forms
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Continuing the discussion from TDS Return Filing Form 26Q:

Thanks Shrutika. Do I need a TAN? And is it okay to file Form 27Q for the entire financial year itself instead of quarterly filing?
Also, once I submit Form 27Q and make the TDS payments, do I still need to issue Form 16C to the owner?

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Hi @The_Write_Stuff

According to Indian income tax laws, any person (individual, company, etc.) paying rent to an NRI (under the Indian tax law) must mandatorily deduct taxes at source (TDS) before making a payment.

A quick summary of the actions to be taken by a tenant are-

  1. Obtain Tax Deduction Account Number (TAN) - The tenant making the payment to an NRI landlord is mandatorily required to apply for a TAN. The TAN facilitates the tax deduction process for the tenant and is required to be quoted in the forms to be filed with the income tax authorities
  2. Deduction of TDS at the time of payment or credit to the account of the landlord, whichever is earlier
  3. Payment of TDS to the Government authorities - The tenant should fill and submit a challan within the 7th of the subsequent month to remain compliant with the provisions of the law. For e.g., TDS on rent deducted in the month of September should be deposited with the Government by 7th October.
  4. Online filing of TDS return -There is a requirement for the tenant to file an online TDS return every quarter in in order to avoid any interest & penalty, with the details of payments made to the NRI and TDS deducted.
  5. Issuance of TDS certificate to the NRI - The tenant is also required to issue a TDS certificate by downloading the same from TDS TRACES website of the Income tax department

Hope this helps.

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Hi Maam. Thank you for your clarifications. I am NRI.

  1. I applied for Tax Exemption Certificate Form 13 on 19 Dec 22
  2. Couple of clarifications from ITO and all of them were replied immediately with supporting Documents
  3. Until 23 January 2023 I did not received Form 13 for Tax Exemption or Lowering TDS
  4. Due to the limited time, Proceeded with property sale deed registration and buyer deducted 20%+Cess+SC to GOI
  5. Buyer filled Challan 281 and remitted the payment to GOI. Received the copy of payment receipt
  6. Buyerā€™s CA is telling Form 27Q will be submitted by Buyer after ending of Quarter (Q4) ie In the month of April 2023
  1. If so, upon submission of 27Q by buyer with my PAN reference etc. Then Form 16A generation mapping my PAN etc.
  1. Assuming this will reflect in my 26AS may be in the month of May 2023 likely
  2. During my submission of ITR 2 for FY22-23 - can I take this TDS into account (event happened in 23 January 2023). Upon processing only I may get Refund
    Is this my understanding is correct. I asked CA who done Form 13 for me and he did not answer me correctly. He is telling it will map in my PAN etc.

Kindly clarify / confirm whether my refund will be received within this year Upon filing ITR-2 returns FY2022-23( likely in the month of May or June 2023).

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Hi @Srikanth,

Yes, as per your stated situation, you can take the TDS credit while filing ITR for FY 2022-23 and AY 2023-24. If your tax liability is less than TDS deducted, then the excess amount will be refunded to you.

Hope it helps.

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Thanks a lot. Appreciated

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Kindly update whether TDS Credit filing (Quarter 4th end of 31st March 2023) can be done now. I need to get the copy of Form 27Q from Buyer and Form 16 etc. The TDS made is quite high amount and i am afraid. Can you help us in this regard. We can share the details ( buyer and seller).

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Hi @Srikanth

A buyer can file Form 27Q of the 4th quarter now till 31st May. As the return gets filed, you can ask for Form 16 from your buyer.

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Thank you. Buyer agent is telling 4th Quarter e-TDS cannot be submitted now as the portal is not ready. Please confirm it is true information.

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Hi @Srikanth

Recently, the filing of TDS returns has shifted to Income Tax Portal from TIN-NSDL. From there you would be able to file Form 26Q. Follow these steps,

  1. Visit the Home | Income Tax Department
  2. Navigate to Dashboard > E-File > e-Pay Tax
  3. Click on New Payment tab from right side
  4. Scroll down and select the tab ā€œForm 26QBā€
  5. Enter the required details and make the payment

Hope this helps.

1 Like
30

Hi,

I have deducted 5% TDS (Rs 4000) in Aug 23 on brokerage for a house sale. (also have received a GST bill from the broker though I do not have GST). I also have applied for a TAN and received the number.

I do not deduct tax at source for any other payments generally as I am an individual resident.

My uestions are as below
a. Since the amount is small should i remit this as TDS or pay the amount to the broker directly?
b. Since I have been allotted a TAN, is it compulsory to file TDS returns even if there are no other TDS that I deduct? If yes, then is it uarterly or annual?

Thanks for your help.

31

Hello @anands,

Hereā€™s an answer to your queries:

  1. Since you have deducted the TDS, you are required to deposit the same with the government on or before 7th Sept, 2023. You cannot pay the amount directly to broker.
  2. Yes, you will have to file the TDS return for the TDS deducted on brokerage. TDS return filing is on a quarterly basis.

Read more about Form 26Q TDS other than salary

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Can you pls help me on this.

There was house sell deal between Buyer (indian citizen) and seller ( NRI) but deal was cancelled.

Buyer has already deposited TDS against TAN before house sale.

Now since the house sale deal is cancelled, which form buyer should use to claim refund of TDS deposited already?

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Hey @waytomatrix,

Welcome to the community!

Since the deal was cancelled after the TDS was deposited via TAN, the buyer needs to claim a refund of the ā€˜unconsumed challan.ā€™

Sometimes the original challan doesnā€™t immediately reflect as ā€˜availableā€™ for refund in the TRACES portal. To fix this, you need to make a small payment of ā‚¹1 under the same head. This wakes up the system and forces the portal to sync your records, making the full TDS amount visible so you can proceed with the claim.

  1. Once the amount reflects, log in to the TRACES portal and go to the ā€˜Refundsā€™ tab to file a Refund Request.
  2. You will likely need to provide a Cancellation Agreement and a declaration from the NRI seller.
  3. Because itā€™s an NRI transaction, the Assessing Officer (AO) will manually verify the claim before the money gets credited to your account.

Itā€™s a bit of a process, but this approach will save you a lot of back-and-forth with technical support!