TRACES stands for TDS Reconciliation Analysis and Correction Enabling System. It is an online platform used for the administration and implementation of TDS (Tax Deducted at Source) and TCS (Tax Collected at Source).
In the case of the sale of immovable property, the buyer is required to deduct TDS under section 194IA before making payment to the seller. The buyer must then file Form 26QB and issue Form 16B to the seller. Form 26QB is processed by CPC-TDS as part of the TDS return system.
If the Statement Status of Form 26QB shows “Processed with Default”, the buyer can raise a request from their registered TRACES account to download the Form 26QB Justification Report. This report is available from AY 2014-15 onwards and provides complete details of any defaults or errors identified during the processing of the TDS return.
After reviewing the issues mentioned in the justification report, the taxpayer should file a correction TDS return to rectify the errors and ensure proper compliance.
Steps to Download Form 26QB Justification Report from TRACES
1. Log in to TRACES: Access the TRACES portal by entering your User ID, Password, PAN, and the captcha code to log in to your account.
2. Navigate to the Justification Report Download Section: After logging in to TRACES, go to Statements / Forms and select Request for Justification Report Download to proceed.
3. Select Form 26QB: Choose Form Type – 26QB to submit your request for downloading the Justification Report.
4. Enter the Required Details: Select the Assessment Year from the drop-down menu, enter the Acknowledgement Number, and provide the PAN of the Seller. Then, click Proceed to continue.
5. Enter CIN (Challan Identification Number) Details
Provide the challan information as per the Form 26QB filed for the given Acknowledgement Number, PAN of Buyer, and PAN of Seller, then click Proceed. The details to enter are:
- BSR Code – Bank Branch Code
- Date of Deposit – The date when the tax was deposited, in dd-mm-yyyy format (e.g., 10-01-2019)
- Challan Serial Number – A 5-digit number (e.g., 00025)
- Challan Deposit Amount – Enter the deposited amount with decimal places (e.g., 1569.00)
6. Success Message: Once the request is successfully submitted, a success page will appear with a Request Number. You can then download the Form 26QB Justification Report from the Downloads tab.
7. Navigate to Requested Downloads: Go to Downloads > Requested Downloads.
8. Enter the Request Number/Date: Input the Request Number, Request Date, or select View All, then click View Request. A list of requests matching your criteria will appear. Select the relevant request, and if the Status shows “Available”, click the Download button.
Note: If the status shows “Submitted”, please wait 24 to 48 hours for it to update to Available.
9. Download the File: Click the HTTP Download button to download the file. A ZIP file containing the Form 26QB Justification Report will be saved to your system.
Note: The password to open the ZIP file is the PAN of the Buyer in capital letters (e.g., AABPA1212A).
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FAQs: Downloading Form 26QB – Justification Report on TRACES
1. What are the possible ‘Request Status’ for Form 26QB Justification Report?
- Submitted – The taxpayer’s request has been submitted and is pending processing.
- Available – The request has been processed, and the Justification Report is ready to download.
- Failed – The request could not be processed due to a technical issue. In this case, the taxpayer should resubmit the request or contact CPC (TDS).
2. What is the password to open the Form 26QB Justification Report?
The report is downloaded as a ZIP file, and the password is the Buyer’s PAN in capital letters.
Example: AABPA1212A
3. What is the due date for filing Form 26QB?
TDS on the sale of immovable property must be deposited within 30 days from the end of the month in which TDS is deducted. Accordingly, Form 26QB must be filed within 30 days from the payment of the property sale consideration.
