Form 26QC must be filed by tenants deducting TDS on rent payments to landlords, and errors may arise due to incorrect details. This guide will walk you through the correction process in TRACES.
1. Step-by-Step Correction Process in Form 26QC
Method A: Correction with Digital Signature Certificate (DSC)
Log into TRACES: Access the TRACES portal and log in with PAN/TAN and password.
Statement and Forms: On the homepage, select the “Statement and Forms” tab.
Request for Correction: Choose “Request for Correction” from the dropdown list.
Select Form 26QC: From available options (26QB, 26QC, 26QD, 26QE), select Form 26QC.
Checklist Review: Review displayed conditions to ensure compliance.
Enter Details: Input the Financial Year and Acknowledgement Number, then click on “File Correction”.
Track Correction Request: Go to Track Correction Request, select View All, and proceed with your request.
Enter Challan Details: Input Challan details from the original filing for validation.
Make Corrections: You can correct fields such as:
- Landlord/Tenant details
- Date of payment received
- Date of TDS deduction
- Monthly rental charge
Confirm Changes: Verify corrections and confirm them.
Submit and Download: Submit and download the acknowledgement as proof.
Method B: Correction Without Digital Signature Certificate (DSC)
Internet Banking Login: Log in to your bank’s internet banking portal. Under View 26AS, click on E-Verified Services on TRACES to be redirected to TRACES.
TRACES Login: Log in to TRACES with your registered credentials.
Continue as Above: Follow the same steps as in the DSC method, starting from Step 3.
2. Quick Reference Table for Correction in Form 26QC
| Step | Action | Description |
|---|---|---|
| Login | Log into TRACES | Use PAN/TAN and password. |
| Access Forms | Go to Statement and Forms | Select Request for Correction option. |
| Select Form | Choose Form 26QC | Available options: 26QB, 26QC, 26QD, 26QE. |
| Checklist | Review Checklist | Ensure you meet conditions before proceeding. |
| Enter Details | Financial Year, Acknowledgement Number | Click File Correction. |
| Track Request | Track Correction Request | Select Available next to the request. |
| Challan Details | Enter Challan details | Enter details from the original Form 26QC. |
| Edit Information | Correct relevant fields | Update tenant/landlord details, dates, rental amount. |
| Confirm Changes | Verify and confirm updated details | Yellow highlights will show corrected fields. |
| Submit & Download | Submit and download acknowledgement | Keep the receipt as proof of correction submission. |
3. Illustration of Form 26QC Correction
Example Scenario:
Original Form Details:
- Tenant PAN: ABCDE1234F
- Landlord PAN: XYZAB5678L
- Monthly Rent: ₹50,000
- Date of TDS Deducted: 05-Apr-2023
- Date of Payment: 05-Mar-2023
Correction Needed:
- Issue: The Date of TDS Deduction was entered incorrectly as 05-Apr-2023 instead of the correct date 05-Mar-2023.
- Solution: Log into TRACES, access the Correction section for Form 26QC, and follow the steps to edit the Date of TDS Deduction.
Process:
- In Track Correction Request, locate the correction request.
- Enter Challan details to validate the correction.
- Update the Date of TDS Deducted to the correct date, 05-Mar-2023.
- Confirm the correction, submit, and download the updated acknowledgement.
Key Considerations and Tips
- Ensure Accuracy in Challan Details: Incorrect Challan details can delay the correction process.
- Avoid Penalties: Correct errors before due dates to avoid interest (1% monthly for deduction delay, 1.5% for deposit delay) and penalties.
- Keep Acknowledgement: The corrected Form 26QC acknowledgement is essential for tax compliance and record-keeping.
- Regularly Check Status: Monitor the status under Track Correction Request to ensure processing and detect issues early.
This guide, illustration, and quick-reference table should provide a clear, step-by-step understanding of Form 26QC corrections.
