Buyer or tenant deducted full TDS despite your lower TDS certificate — what to do
If a buyer, tenant, or bank deducted tax at the full default rate despite a valid lower TDS certificate, first confirm the certificate actually reached them before the deduction happened. If it did and was ignored, ask them to correct their TDS return; if it didn't reach them in time, or the deduction has already been deposited, your remaining option is usually to claim the excess back through your ITR.
Start by checking the timeline
The most common reason a certificate 'doesn't work' isn't that it was invalid — it's that it reached the deductor after they'd already made the payment and deducted tax. A certificate has no effect on a deduction that already happened; it only governs deductions made after it's in the deductor's hands. If this is what happened on a property sale specifically, check whether the certificate arrived before or after the actual payment date, not just before the sale agreement was signed.
If the certificate was in hand but ignored
Sometimes a buyer or tenant deducts at the default rate simply out of caution, unfamiliarity with the certificate, or because their accountant defaulted to the standard process. In this case, ask the deductor to correct their TDS return (Form 26Q or 27Q, filed by them) to reflect the correct, lower rate and reissue the correction. This directly fixes what shows up in your Form 26AS/AIS, which is what ultimately determines what you can claim credit for.
We'll help you sort out whether a TDS correction or an ITR refund claim is the right next step.
Get help →If correction isn't possible or the deduction is already deposited
If the tax has already been deducted and deposited with the government at the higher rate, and the deductor either can't or won't file a correction, the excess amount is still recoverable — just through a different route. You claim it as excess TDS when you file your Indian ITR for that year, the same way you would if you had never applied for a certificate at all.
Preventing this the next time
For future transactions, the safest approach is to confirm receipt of the certificate with the deductor in writing before payment is made, and to follow up proactively rather than assuming it will be applied correctly. Our processing timeline guide covers how much lead time to build in so this scenario is avoidable in the first place.
Can I get a refund for excess TDS even if I have a valid lower TDS certificate?
Yes. Having a certificate doesn't prevent you from claiming a refund if, for whatever reason, more tax was actually deducted than the certificate specified. You reconcile the actual TDS credited to your PAN (as shown in Form 26AS/AIS) against your real tax liability when filing your ITR, and claim any excess as a refund.
This article is for general information only. For your specific situation, consult a practicing CA.
Get the excess TDS sorted
Whether it's a correction or a refund claim, we'll help you recover what's yours.
Talk to a CA →