double remittance of TDS on property purchase- refund issue

[Balaji G]

In March 2022, a property purchase involving four buyers and six sellers was completed in Bangalore. Due to a clerical error, one of the buyers submitted a single TDS Challan instead of six individual Challans for his purchase value. Upon realizing the mistake and consulting the TDS department for rectification or refund, he was advised to file six fresh Challans and pay the TDS again, then request a refund. The buyers complied in September 2022, paying an additional Rs. 1.75 lakhs and requested a refund for the double payment.

Instead of a resolution, six demand notices with penalties and interest charges were issued, citing delayed payments. Multiple follow-ups and correction requests through TRACES have not resolved the issue. The TDS department claims there are outstanding dues on the PAN, preventing resolution. However, the Income Tax Assessment officer confirms no dues against the PAN, and the assessee has filed his IT returns for the next three years, receiving refunds on regular salary-based TDS returns.

Both the TDS department and the Income Tax department claim they are unable to resolve the issue due to lack of access. Additionally, the grievance portal of TRACES (request for resolution) does not offer any option that closely resembles this problem so could not upload there too. how to go about this.

AI Summary

Buyer Faces Penalties for Clerical Error in TDS Payment Despite Compliance; System Limitations Hinder Resolution Options In March 2022, a property purchase in Bangalore involved a clerical error where a buyer submitted one TDS Challan instead of six. Upon realizing the mistake, the buyer was instructed to file six new Challans and pay the TDS again, requesting a refund for the double payment. Despite compliance, six demand notices with penalties were issued for delayed payments. The TDS and Income Tax departments claim they cannot resolve the issue due to system limitations, and the TRACES grievance portal lacks a suitable option for this problem. Suggestions include pursuing resolution through CPGRAMS or statutory appeals.