Correction of Form 26QB

Form 26QB is a consolidated form which is intended to be filed for the deposit of TDS on property. Form26QB consists of details pertaining to the buyer, seller, the property being sold, sale consideration and other related details. The Government has facilitated the revision of Form 26QB, which can be conveniently done through the TRACES website. The purpose of filing Form 26QB is to inform the Government that a property sale transaction has taken place and also convey whether TDS has been deducted on the transaction or not, in accordance with the applicable provisions of the Income Tax Act. In this article, we discuss the procedure for correction of Form 26QB.

Permitted Areas of Correction

The buyer will be allowed to enforce correction on the following fields:

Buyer PAN
Seller PAN
Assessment year
Major head, which is 0020 – Income Tax on Companies (Corporation Tax) and 0021 – Income Tax (Other than Companies)

No Objection Certificate

Before performing the necessary corrections, the buyer is required to obtain a NOC from the seller in the form of an original affidavit.

Request for Correction

The request for rectification can be completed in the following manner: Step 1:- Login to the official portal of TRACES by entering the user ID, password, TAN and captcha code. Step 2:- You will be directed to the welcome page, wherein you must opt for the 'Defaults' drop-down menu, and select 'request for correction'. Step 3:- Register your Digital Signature, if it hasn’t been done earlier. Step 4:- Specify the relevant financial year, quarter, form type, correction category and latest token number, and then submit the same. Taxpayers should note that an error message will be displayed if the data provided is found to be incorrect, duplicate, devoid of a statement or invalid token number. After successful completion of the above-mentioned procedures, the request for correction will be submitted. After filing the request for correction, the user can rectify the requisite details. It may be noted that only the buyer is entitled to file the revision request and not the seller.

Verification of Request

The request for correction of form can be filed for e-verification by means of Net-banking, approval of the Assessing Officer (AO) or Digital Signature; on the condition that the seller is known. If the Digital Signature is not registered for the buyer and the seller is untraceable, the request for correction can be submitted through the AO Approval option. If the Digital Signature is unregistered for the buyer and the seller is known, the request for correction can be furnished through Net-banking for AO Approval. If the request is sent to the AO for approval, the Jurisdictional AO would be determined in accordance with the jurisdiction of the Buyer.

Tracking of Request

The TRACES website not only facilitates the submission of the correction request but helps the user in tracking the submitted request. The procedures for the same are listed below: Step 1:- On the default drop-down menu, select ‘Track correction request’. Step 2:- Enter the request number which would have been sent while submitting the correction request, and then click on ‘View all requests’. Step 3:- A list of results will be displayed depicting all the requests filed by you. Step 4:- Select the request which you would like to view. The status of correction will be displayed on the screen.

What does the Status Convey?

Status messages could convey any of the meanings mentioned below. The various meanings are mentioned below:

Available: - If the request for correction is available, the correct status would indicate its availability.
Pending for AO approval: - If the correction is submitted and verified, it would be pending for the approval of AO; upon which a status of this kind will be displayed.
Pending for PAN approval: - If the correction is submitted to the 2^nd party for approval, this status will be displayed.
Submitted to ITD: - Upon the approval of the AO or the 2^nd party, the status will be submitted to the Income Tax Department (ITD), which will be confirmed through this status.
Processed: - The status would be successfully processed if the request is processed by TDS CPC.
Cancelled: - The status would be cancelled if the buyer decides to cancel the same before the approval or processing.

Assign Sub-User

Together with correction of Form 26QB, the user of the TRACES portal is provided with the facility of assigning a sub-user for the particular form. It can be done while viewing the request number, by selecting the ‘assigned to’ option under the view all requests page. On the succeeding page, the user needs to select the ‘click here to assign’ option, after which the sub-user can be assigned.