Every month, match the 1% TDS each buyer deducted, as recorded in your books, against the credits shown in your annual information statement, and chase the buyers whose credit is missing or wrong. Only the buyer can fix a wrong filing, because the buyer is the deductor, so the builder’s job is to find each gap early and tell the buyer exactly what to correct.
Unmatched TDS is real money. On a 200-flat project where every flat sells at ₹80 lakh, buyers deduct ₹1.6 crore of TDS over the life of the project (200 × ₹80 lakh × 1%, sample figures). Every rupee of it that does not reach your credit is a credit you cannot claim until the buyer fixes it.
Where the credit comes from
For payments from 1 April 2026, the buyer deducts under s.393(1), Table serial 3(i), of the Income-tax Act 2025, pays the tax with a challan-cum-statement in Form No. 141 (which replaced Form 26QB) within 30 days from the end of the month of deduction (rules 218(3) and 219(5)), and downloads a certificate in Form No. 132 (which replaced Form 16B) within 15 days of that due date (rule 215).
The credit then appears in your annual information statement, which rule 245 of the Income-tax Rules 2026 calls Form No. 168. For payments before 1 April 2026, the credit appears in the AIS for the matching assessment year, as before; the e-filing portal’s FAQs say the two statements are kept separately. Rule 245 allows the department up to 90 days from the end of the month it receives the information to upload it, so a recent payment may not show yet.
The monthly reconciliation, step by step
- List TDS receivable by buyer. For every receipt where the buyer paid 99%, your books should hold the 1% as TDS receivable against that booking.
- Download your statement. Export the TDS credits for the period under the property section.
- Match on three keys: the buyer’s PAN, the amount, and the month of payment. Matching on name alone fails on spellings and joint buyers.
- Clear what matches. Move matched amounts from TDS receivable to TDS credit claimed.
- Age what does not. Anything past the Form 132 due date without a matching credit goes on a follow-up list with the reason.
- Write to each buyer with the exact correction needed, and keep a copy of the request.
Why credits go missing
| What you see | Likely cause | What the buyer must do |
|---|---|---|
| No credit at all | Tax deducted but not deposited | Deposit with interest and fee |
| Credit under another PAN | Buyer typed the builder’s PAN wrongly | File a correction with your PAN |
| Credit smaller than expected | TDS worked out on the wrong amount | Correct the amount; pay the gap |
| Credit in the wrong year | Wrong payment date or year on the form | Correct the date or year |
| Credit missing after 1 April 2026 | Old section quoted, or the wrong year chosen | File a correction statement |
| One credit for two joint buyers | Only one co-buyer filed | Each co-buyer files their share |
| Credit present, but no Form 132 sent | Buyer did not download the certificate | Download and send Form No. 132 |
The e-filing portal’s FAQs name the two transition mistakes: quoting the old Act’s section for a payment made after 1 April 2026, and choosing the wrong assessment or tax year. Both are fixed by the deductor filing a correction. On joint purchases, the Form 141 manual has each buyer enter their own share of the property, and the amount for TDS is worked out on that share.
Late deposit is costly for the buyer: interest of 1.5% a month, or part of a month, from deduction to payment under s.398(3)(a)(ii), and a fee of ₹200 a day for a late statement under s.427(1), up to the tax amount (s.427(2)(a)). Mention this early, in a polite reminder.
How long can a correction wait?
Section 397(3)(f) allows a correction statement within two years from the end of the tax year in which the original statement was due. Do not leave it that long. Buyers move, change numbers and lose interest once they have possession, so chase while you still hold a demand they need to pay.
Making it routine
- Print your PAN, and the correct section and form names, on every demand letter.
- Ask for Form No. 132 with every receipt that shows a 1% short payment.
- Hold back the possession letter only where your agreement allows it; otherwise, settle TDS gaps before the final demand, when the buyer is most responsive.
How LoftRay helps
LoftRay records TDS, with its section, in transactions, so your team can book the 1% a buyer deducts as TDS rather than leave it as an overdue amount. Bank reconciliation matches the 99% that reached your account. LoftRay does not connect to the tax portal or file returns: your team downloads the statement there and matches it against a saved TDS report from LoftRay’s report builder.