Taxpayers must use the old TRACES portal to correct TDS challans mistakenly filed under FY 2025-26 for Tax Year 2026-27. The new portal lacks this functionality. Failure to correct will prevent TDS credit and increase tax liability.
The Mumbai Income Tax Appellate Tribunal (ITAT) ruled that a property buyer is not liable for short TDS deduction if the seller regularizes their PAN. The case involved a Rs 1.9 crore flat purchase where the buyer deducted TDS on her share, but the tax department sought higher TDS due to an inoperative PAN. ITAT deleted the demand, citing CBDT circulars and the seller's tax compliance. Experts advise buyers to be aware of TDS obligations, especially for non-resident sellers or joint property purchases.
Tenants in India paying over Rs 50,000 monthly rent must deduct 2% TDS on gross rent. This applies to individuals/HUFs not requiring tax audits. TDS is deducted in the last month of tenancy/financial year and deposited via Form 26QC (or Form 141 after April 2026), with Form 16C (or Form 132) issued to landlords. Non-compliance incurs interest and penalties.
Buyers of Indian property worth ₹50 lakh or more must deduct 1% TDS under Section 194-IA, depositing it with the government to avoid interest and penalties.
