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| + | ====== AIS Shows Rent You Never Got: The 26QC Wrong-PAN Fix ====== | ||
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| + | {{ : | ||
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| + | <WRAP center round info 95%> | ||
| + | **Quick Reply:** AIS shows rent and TDS but you own no property? A tenant quoted your PAN in Form 26QC. Submit AIS feedback, get 26QC corrected on TRACES, and file RTI if... | ||
| + | </ | ||
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| + | **Reviewed on:** 2026-07-04. | ||
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| + | <WRAP info> | ||
| + | Your Annual Information Statement (AIS) shows rent income and TDS under Section 194-IB against your PAN, but you own and let out no property. In almost every case a tenant has filed Form 26QC quoting a wrong landlord PAN that happens to be yours. The fix is AIS feedback on the e-filing portal, a 26QC correction by the tenant on TRACES, and an RTI to the Income Tax Department only if your portal grievance goes unanswered. The Central RTI fee is Rs 10 and the CPIO must reply within 30 days. | ||
| + | </ | ||
| + | |||
| + | ===== The story most citizens recognise ===== | ||
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| + | It is the second week of July 2026, and Anjali, a salaried credit analyst in Pune, logs in to the Income Tax e-filing portal to download her AIS before filing her return for assessment year 2026-27 (financial year 2025-26). She scrolls to Part B, and there under the head **Rent received** sits Rs 6,00,000, with TDS of Rs 12,000 deducted against her PAN. She owns no house, has never let one out, and has never received a rupee of rent from anyone. The figure is large enough to move her into a higher tax slab if she ignores it. | ||
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| + | What happened to Anjali is almost never fraud. Somewhere in a suburb of the same city, a corporate tenant paying monthly rent above Rs 50,000 deducted TDS under Section 194-IB and filed **Form 26QC** on TRACES. In the challan-cum-statement the tenant entered a landlord PAN that differs from the real landlord' | ||
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| + | Both situations leave a rent trail on a stranger' | ||
| + | |||
| + | ===== What the wrong-rent AIS entry actually is ===== | ||
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| + | The Annual Information Statement is a consolidated statement of financial information reported about a taxpayer by third parties: banks, employers, mutual funds, registrars, and tenants who deduct TDS. It is governed by Section 285BB of the Income-tax Act, 1961, read with Rule 114-I, and is generated by the Directorate of Systems under the Central Board of Direct Taxes (CBDT). The AIS feeds the Taxpayer Information Summary (TIS), and the TIS values flow into the pre-filled return of income. A wrong entry in the AIS is not itself an assessment, but it shapes what the Department' | ||
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| + | A rent entry with TDS in the AIS almost always traces back to a **Form 26QC** filing. Form 26QC is the challan-cum-statement used under Section 194-IB when an individual or HUF, who is not covered by a tax audit under Section 44AB, pays monthly rent exceeding Rs 50,000 to a resident landlord. The tenant deducts TDS once, for the last month of the financial year or the last month of the tenancy, whichever is earlier, and files Form 26QC on TRACES within 30 days from the end of the month in which the tax was deducted. No TAN is required; the filing carries only the tenant' | ||
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| + | The Income Tax Department is a public authority under the Right to Information Act, 2005. It operates under the CBDT, the Department of Revenue, and the Ministry of Finance. Central Public Information Officers (CPIOs) are designated at every level: the jurisdictional Income Tax Officer (ITO) ward or circle is the CPIO for assessment records, Deputy and Assistant Commissioners (DCIT/ACIT) are CPIOs for their circles, and Additional or Joint Commissioners (Addl./ | ||
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| + | <WRAP tip> | ||
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| + | ===== How the 26QC wrong-PAN trail is created ===== | ||
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| + | Understanding the mechanics tells you what to ask for at each stage. | ||
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| + | - **A tenant pays rent above Rs 50,000 a month** to a resident landlord. Section 194-IB applies to individuals and HUFs not covered by a Section 44AB tax audit. The threshold is monthly rent, not annual. | ||
| + | - **The tenant deducts TDS once** for the last month of the financial year or the last month of the tenancy, whichever is earlier. There is no monthly deduction cycle, which is why the entry often appears as a single lump in the AIS. | ||
| + | - **The tenant files Form 26QC** on TRACES (traces.tdscpc.gov.in) within 30 days from the end of the month in which the tax was deducted. The form captures tenant PAN, landlord PAN, rent amount, property address, and the period. | ||
| + | - **A typo in the landlord PAN** routes the rent and the TDS credit to a stranger' | ||
| + | - **The entry flows into the stranger' | ||
| + | - **The real landlord gets no TDS credit** and may refuse to adjust the rent, which is the tenant' | ||
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| + | The second source, an HRA declaration, | ||
| + | |||
| + | ===== The 2026 update you must know about ===== | ||
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| + | Two changes shape how you handle this in 2026. | ||
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| + | **1. The Section 194-IB rate was cut from 5 per cent to 2 per cent effective 1 October 2024.** The Finance Act 2024, announced in the Budget of 23 July 2024, reduced the TDS rate on rent under Section 194-IB from 5 per cent to 2 per cent with effect from 1 October 2024. For tenancy periods that straddle the change, the 5 per cent rate applies up to 30 September 2024 and the 2 per cent rate from 1 October 2024. During the temporary COVID relief period (14 May 2020 to 31 March 2021) the rate was 3.75 per cent. For financial year 2025-26, which is what most readers filing in July 2026 are dealing with, the applicable rate is 2 per cent. A rent entry in your AIS for FY 2025-26 showing TDS at 5 per cent is itself a red flag that the filing was botched, because the 2 per cent rate should have applied. Conversely, 2 per cent of Rs 6,00,000 is Rs 12,000, which is the figure Anjali saw. | ||
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| + | **2. The e-Verification Scheme, 2021 carries a 15-day response window.** Notified by the CBDT on 13 December 2021 (Notification No. 137/2021) under Section 135A of the Income-tax Act, 1961, the scheme allows the Department to issue a notice under Section 133(6) when a mismatch is found between your return and third-party reported information. The default response due date is 15 days from the date of the notice, extendable on request to the Prescribed Authority. A separate 90-day period applies at the initial information-confirmation stage before a case escalates to the CIT(e-Verification). If you ignore a wrong rent entry and the Department' | ||
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| + | ===== Step-by-step: | ||
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| + | - **Step 1 - Read the entry and capture evidence.** Log in to incometax.gov.in, | ||
| + | - **Step 2 - Submit AIS feedback the same day.** On the AIS screen, click the feedback column on the rent entry and choose the option that fits: **Information relates to other PAN/Year** if the rent is simply not yours, **Information is not fully correct** if part of it is genuine, or **Information is denied** if you flatly reject it. The portal offers six feedback types in total, including **Information is correct**, **Information is duplicate/ | ||
| + | - **Step 3 - Identify and contact the tenant.** If the AIS entry shows deductor particulars (common for 26QC-based TDS), write to the tenant with the facts: their Form 26QC challan quoted your PAN instead of their landlord' | ||
| + | - **Step 4 - Have the tenant file the 26QC correction on TRACES.** The tenant logs in to traces.tdscpc.gov.in, | ||
| + | - **Step 5 - File your return excluding the rent, keeping the ACF PDF.** Declare your actual income. The pre-filled return may still carry the rent entry until the AIS refreshes; override it with the correct figure and retain the ACF PDF as the reason. You are not liable for tax on income you never earned, but the documentary trail protects you if the CPC or an officer asks. | ||
| + | - **Step 6 - File a portal grievance if the tenant is untraceable.** If the deductor is a stranger you cannot contact, raise a grievance on the e-filing portal under Services, Grievances, stating that an unknown deductor has reported rent against your PAN and asking the Department to verify the 26QC filing. Note the grievance number and date. | ||
| + | - **Step 7 - File an RTI if the grievance goes unanswered.** If 30 days pass with no action on your grievance, file an RTI application on rtionline.gov.in for Rs 10 to the CPIO of the jurisdictional Assessing Officer (for assessment-side matters) or to the CPIO of the Directorate of Systems / DGIT(Systems) for AIS and 26AS infrastructure matters. Ask only for the status and action taken on your grievance, not for the third party' | ||
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| + | For drafting the application, | ||
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| + | ===== Documents to attach ===== | ||
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| + | - **AIS PDF** downloaded on the day you first spotted the entry, with the rent row visible. | ||
| + | - **AIS Consolidated Feedback (ACF) PDF** generated after you submitted feedback. | ||
| + | - **Screenshot of the rent entry** showing the deductor or reporting entity details and the TDS amount. | ||
| + | - **Copy of your PAN card** (sent to the tenant, not to the RTI CPIO). | ||
| + | - **Form 26AS for the relevant financial year**, showing the Section 194-IB line. | ||
| + | - **Portal grievance acknowledgement** showing the grievance number and date, if you filed one. | ||
| + | - **Proof of property ownership status** (municipal records or a self-declaration) confirming you own no let-out property, useful only if an AO queries you. | ||
| + | - **For the tenant' | ||
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| + | ===== Common mistakes ===== | ||
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| + | - **Do not declare the rent as your income to " | ||
| + | - **Do not ignore the entry.** An unexplained Rs 6,00,000 of rent can trigger a compliance communication, | ||
| + | - **Do not ask the RTI CPIO for the tenant' | ||
| + | - **Do not file the RTI before filing a portal grievance.** RTI is a backstop for a stuck grievance, not a first step. Without a grievance number, there is no " | ||
| + | - **Do not assume the rate is always 2 per cent.** For periods before 1 October 2024 the Section 194-IB rate was 5 per cent, and for 14 May 2020 to 31 March 2021 it was 3.75 per cent. A rate mismatch in the AIS is a clue, not a defence by itself. | ||
| + | - **Do not pay any " | ||
| + | - **Do not let the first-appeal deadline lapse.** Under Section 19(1) of the RTI Act, 2005, the first appeal must be filed within 30 days of the expiry of the CPIO's reply period. Missing it closes the cheap escalation route. | ||
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| + | ===== Real-life example ===== | ||
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| + | <WRAP center round box> | ||
| + | **Anjali D., Pune, July 2026.** On 12 July 2026, Anjali opened her AIS for financial year 2025-26 and found Rs 6,00,000 of rent with TDS of Rs 12,000 under Section 194-IB. She owns no property. The TDS figure matched the 2 per cent rate applicable from 1 October 2024, confirming a recent 26QC filing. The deductor particulars in the AIS pointed to a company employee in Baner whose landlord' | ||
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| + | On 12 July she submitted AIS feedback as **Information relates to other PAN/Year** and downloaded the ACF PDF. On 13 July she emailed the tenant with her PAN card copy and a one-paragraph explanation. The tenant logged in to TRACES on 14 July, raised a Form 26QC correction request, and on 17 July (after the request showed as " | ||
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| + | Anjali filed her ITR on 28 July 2026, declaring her salary income only, and retained the ACF PDF. Total cost: Rs 0. No RTI was needed because the tenant acted. Had the tenant ignored her, her next step would have been a portal grievance, and if that too went unanswered for 30 days, an RTI on rtionline.gov.in for Rs 10 to the CPIO of her jurisdictional ITO ward asking for the status and action taken on the grievance. | ||
| + | </ | ||
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| + | ===== Sample RTI letter ===== | ||
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| + | Use this only after you have filed a portal grievance and 30 days have passed without a meaningful response. Replace the bracketed fields with your details. | ||
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| + | < | ||
| + | To | ||
| + | The Central Public Information Officer | ||
| + | [ITO Ward/ | ||
| + | Income Tax Department, Department of Revenue, Ministry of Finance. | ||
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| + | Sub: Application under Section 6(1) of the Right to Information Act, 2005. | ||
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| + | Sir/Madam, | ||
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| + | I, [Full Name], PAN [XXXXXXXXX], | ||
| + | following information under Section 6(1) of the RTI Act, 2005, in respect of | ||
| + | grievance no. [grievance number] dated [date] submitted by me on the Income Tax | ||
| + | e-filing portal regarding a wrong rent entry of Rs [amount] with TDS of Rs | ||
| + | [amount] under Section 194-IB reflected in my Annual Information Statement for | ||
| + | financial year [YYYY-YY], against a property I do not own and rent I have never | ||
| + | received. | ||
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| + | 1. The present status of grievance no. [grievance number] dated [date]. | ||
| + | 2. The name and designation of the officer handling the said grievance. | ||
| + | 3. The action taken, if any, on the said grievance, with dates. | ||
| + | 4. If no action has been taken, the reasons recorded for the inaction. | ||
| + | 5. The expected date by which the wrong entry will be removed from my AIS or | ||
| + | the matter will be taken up with the deductor under the e-Verification | ||
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| + | I clarify that I am not seeking the personal information, | ||
| + | tenant particulars of any third party, which I understand is exempt under | ||
| + | Section 8(1)(j) of the RTI Act, 2005. I seek only the status and action taken | ||
| + | on my own grievance. | ||
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| + | The application fee of Rs 10 is being paid online through the RTI Online portal | ||
| + | (rtionline.gov.in). I request that the information be supplied to me | ||
| + | electronically, | ||
| + | Section 7(1) of the RTI Act, 2005. If the information is denied in whole or in | ||
| + | part, I request that the specific section of the RTI Act on which the denial is | ||
| + | based be cited, and that my right to file a first appeal under Section 19(1) | ||
| + | within 30 days be intimated to me. | ||
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| + | Date: [date] | ||
| + | Place: [city] | ||
| + | [Full Name], PAN [XXXXXXXXX], | ||
| + | </ | ||
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| + | ===== Frequently asked questions ===== | ||
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| + | ==== Do I have to show this rent in my ITR? ==== | ||
| + | No. You declare your actual income under Section 4 of the Income-tax Act, 1961. Submit AIS feedback so the record reflects your position, keep the ACF PDF, and file your return with the correct figures. The pre-filled return may still carry the rent until the AIS refreshes; override it with the right number. | ||
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| + | ==== Will I automatically get a notice because of the wrong entry? ==== | ||
| + | No. AIS entries are information, | ||
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| + | ==== Can I find out who quoted my PAN? ==== | ||
| + | For a 26QC-based entry, the AIS itself shows the deductor or reporting entity details. Beyond that, RTI will not give you another person' | ||
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| + | ==== The rent is partly mine. I let out one floor but the figure is double. What do I do? ==== | ||
| + | Use the **Information is not fully correct** feedback option and enter the true amount you actually received. Then ask your actual tenant to file a 26QC correction on TRACES updating the rent figure and, if needed, the landlord PAN. Keep the ACF PDF showing both the reported and modified values. | ||
| + | |||
| + | ==== What TDS rate should the entry show for FY 2025-26? ==== | ||
| + | Under Section 194-IB, the rate is 2 per cent from 1 October 2024 onwards, after the Finance Act 2024 cut it from 5 per cent. For FY 2025-26 the 2 per cent rate applies throughout. A 5 per cent figure on a FY 2025-26 entry is a clue that the filing was botched. For older years, remember the 3.75 per cent COVID rate applied from 14 May 2020 to 31 March 2021. | ||
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| + | ==== My employer-reported HRA entry names me as landlord. Is the fix the same? ==== | ||
| + | Submit the same AIS feedback. There is no TRACES correction for HRA reporting, so the feedback plus a portal grievance is the route. If a colleague or relative used your PAN, ask them to correct their rent declaration with their employer so the next quarter' | ||
| + | |||
| + | ==== Feedback submitted, but the entry is still visible. Has it failed? ==== | ||
| + | No. After feedback, the entry stays visible with both the reported value and your modified value side by side. The reported value disappears only when the deductor corrects the source filing, that is, the 26QC on TRACES. This is why feedback alone is not enough for a 26QC-based entry; the tenant' | ||
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| + | ==== Could this be deliberate PAN misuse? ==== | ||
| + | Usually it is a typo. But if the same PAN appears in multiple HRA claims or rent entries you never received income for, someone may be using your PAN to fabricate rent receipts. Submit AIS feedback for each entry, keep copies, and state in your portal grievance that you suspect misuse. You are not liable for tax on income you never earned, but the documentary trail protects you. Persistent misuse can be reported in writing to your jurisdictional Assessing Officer. | ||
| + | |||
| + | ==== When exactly should I file the RTI? ==== | ||
| + | File the RTI only after you have filed a portal grievance and 30 days have passed without a meaningful response. The RTI asks for the status and action taken on that grievance, not for the third party' | ||
| + | |||
| + | ==== Is the RTI fee the same in every state? ==== | ||
| + | The Rs 10 fee applies to Central public authorities like the Income Tax Department under the RTI Rules, 2012, payable online through rtionline.gov.in. Below-poverty-line applicants are exempt on producing a certificate. First appeals carry no fee. For state public authorities the fee varies; see [[rti-fees-by-state]] for the state-wise schedule. | ||
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| + | ===== Sources ===== | ||
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| + | - **Section 194-IB of the Income-tax Act, 1961** and **Finance Act 2024** - rate reduction from 5 per cent to 2 per cent effective 1 October 2024. EY alert and TaxGuru summary confirm the rate change and the mechanics: https:// | ||
| + | - **Form 26QC correction on TRACES** - official e-tutorial and procedure: https:// | ||
| + | - **AIS feedback types** - official AIS FAQ and Income Tax India AIS page: https:// | ||
| + | - **e-Verification Scheme, 2021** - CBDT Notification No. 137/2021 dated 13 December 2021 under Section 135A; ITD Quick Reference Guide confirms the 15-day default response window: https:// | ||
| + | - **RTI fee Rs 10, Central authorities** - RTI Rules, 2012 and rtionline.gov.in guidelines: https:// | ||
| + | - **Income Tax Department CPIO list** - Department of Revenue: https:// | ||
| + | - **RTI Act, 2005** - Sections 6(1), 7(1), 8(1)(j), 10, 19(1): standard provisions of the Right to Information Act, 2005. | ||
| + | |||
| + | ===== Related on RTI Wiki ===== | ||
| + | |||
| + | * [[practical-guides: | ||
| + | * [[practical-guides: | ||
| + | * [[practical-guides: | ||
| + | * [[practical-guides: | ||
| + | * [[practical-guides: | ||
| + | * [[practical-guides: | ||
| + | * [[practical-guides: | ||
| + | * [[practical-guides: | ||
| + | * [[practical-guides: | ||
| + | * [[rti-for-tds-it-refund-delayed|RTI for TDS and IT refund delayed]] and [[rti-for-income-tax-refund-delay-2026|RTI for income tax refund delay in 2026]] - RTI for the income tax refund cluster. | ||
| + | * [[rti-for-pan-card-status|RTI for PAN card status]] - PAN-related RTI. | ||
| + | |||
| + | --- | ||
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| + | *This page explains the statutory and procedural position as of July 2026. It is not a substitute for a tax practitioner. If a wrong rent entry has appeared in your AIS, act on the same day, in writing, and keep every acknowledgement.* | ||
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| + | If this guide helped you, draft your application with the AI RTI tool at https:// | ||
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| + | {{tag> | ||