TDS NRI Property Sale - Form 27Q Correction

This query is : Resolved

Namita (Querist)
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13 June 2024 I filled form 27Q incorrectly initially and didn't add breakup of the payments made (different installments).

Reporting it like this in detail has indicated interest for late deduction for the first payment, which I have paid @ 1% per month. The correction is accepted in Traces and I have the revised CSI and Conso file. The Challan tab shows the new challan as well.

When I correct the entries in RPU, there is no column for interest to indicate the interest value and that the new challan has been paid for it.

How to sync/tie the new challan to the entry with delayed TDS deduction. Should I add a new row just for the interest? Since I don't see the column for interest not sure where and how to fill this.

Or should I leave it as is since the challan tab shows the interest paid. If I just correct and add the break up of all payments in the deductee tab, will they be matched and reconciled automatically during processing. Please help.

Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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11 July 2024 When correcting Form 27Q in the RPU (Return Preparation Utility) for TDS filings, especially when you have paid interest for late deduction, here are the steps and considerations:

1. **Correction Process:**
- You have already corrected the Form 27Q in TRACES and have the revised CSI (Consolidated Statement of TDS) and Conso file. This is good progress.

2. **Interest for Late Deduction:**
- If you have paid interest for late deduction of TDS, this interest should be included in your correction. The interest paid should ideally be reflected in the revised Form 27Q.

3. **RPU Entry:**
- In the RPU (Return Preparation Utility), typically there is a section or column where you can indicate interest paid for late deduction. Since you mentioned that you do not see a specific column for interest, here's what you can consider:
- **Adding a New Row:** You can add a new row in the RPU for the deductee for whom you paid interest. In this row, specify the amount of TDS deduction and also include the interest amount separately in the TDS amount field. For example, if the TDS amount was Rs. 10,000 and interest paid was Rs. 500, you would enter Rs. 10,500 in the TDS amount field.
- **Narration or Remarks:** Use the narration or remarks column in the RPU to clearly indicate that the additional amount includes interest for late deduction.

4. **Challan and Payment Details:**
- Since you have already updated the new challan in the TRACES portal and it shows the interest paid, ensure that the new challan details are correctly reflected in the RPU. Verify that the challan details match with what is shown in TRACES.

5. **Reconciliation:**
- During the processing of the corrected Form 27Q in TRACES, the system will reconcile the payment details from the challan with the TDS entries in the deductee tab. Make sure that the breakup of all payments (different installments) is correctly entered in the deductee tab as per the actual payments made.

6. **Final Submission:**
- Once you have made the necessary corrections and additions in the RPU, validate the entire form to ensure there are no validation errors. After validation, generate the FVU (File Validation Utility) file from the RPU.

7. **Submission and Follow-up:**
- Upload the corrected FVU file to the TRACES portal. Monitor the status of the correction in TRACES to ensure it is processed without any errors.

**Important Note:**
- If you are unsure about how to proceed or if the RPU does not have a specific field for interest, it's advisable to consult with a tax professional or contact the TRACES helpdesk for guidance. They can provide specific instructions based on the current version of the RPU and any updates in filing requirements.

By following these steps, you can ensure that the corrected Form 27Q accurately reflects the interest paid for late deduction of TDS, thereby maintaining compliance with TDS provisions.