Lower TDS certificate expired or named another buyer: what it means
It is as serious as any short deduction: wherever the certificate does not reach, the full rate applied, and the difference is yours with interest.
| What went wrong | Covered? | What you owe |
|---|---|---|
| Payment after the certificate's end date | No | Full rate less what you deducted, on that payment |
| Certificate names another buyer, or only your co-buyer | No, for your payment | The same, on your payment |
| Payments exceeded the certificate amount | Only up to the amount | Full rate on the excess |
| Payment made before the certificate was issued | No | Full rate on that payment |
| Certificate cancelled before you paid | No | Full rate from the cancellation |
Where two spouses buy together and each pays, each is a separate deductor and each needs to be named.
How to fix TDS deducted on an invalid lower TDS certificate
Test the certificate against every payment, then top up only what it did not cover.
1. Check the certificate on the TRACES portal against your TAN: the amount already consumed and the dates. 2. Ask the seller whether their return for the year of sale is filed with the tax paid. If it is, a chartered accountant's certificate (Form 26A, now Form 149) ends the tax claim, and interest runs only to the date they filed. 3. Otherwise deposit the shortfall on each uncovered payment under Section 393(2), formerly Section 195, with interest at 1% a month from that payment's date. 4. File or correct the statement for the quarter, Form 27Q up to 31 March 2026 or Form 144 from 1 April 2026, showing the uncovered payment at the normal rate. 5. Send the seller the certificate.
A resident individual or HUF paying from 1 October 2026 reports on Form 141, Schedule E, and gives the seller Form 132. If payments are still to come, the seller can apply for a fresh or revised certificate before the next one is made.
A worked example: Anil in Delhi
Anil agreed to buy a Delhi flat for Rs 80 lakh from Ritu, an NRI in Sydney who had owned it since 2012. Ritu's certificate named Anil, allowed 2% on up to Rs 80 lakh and ran to 31 March 2026. He paid Rs 50 lakh on 20 February 2026 at 2%. Registration slipped, and he paid the Rs 30 lakh balance on 10 April 2026, still at 2%, Rs 60,000.
| Item | Amount |
|---|---|
| Normal deduction on Rs 30 lakh: 14.3%, with surcharge set by the Rs 80 lakh paid in all | Rs 4,29,000 |
| Deducted at 2% | Rs 60,000 |
| Shortfall on the April payment | Rs 3,69,000 |
| Interest at 1% a month to a deposit on 20 October 2026 (7 months) | Rs 25,830 |
The February payment was covered. The April one was not, because the certificate had run out.