23 December 2009
There is no provision for carry forward of excess TDS. File a return and claim the excess TDS deducted in the same Assessment year as a refund.
23 December 2009
we can route the excess payment of tds. If any co-operating client/party is there (to whom we have made payment (or credited) the payment on which TDS is made) then transfer the excess payment of TDS to its account by debiting its account and crediting the TDS account.
for example there are four parties to whom we have paid/credited interest of Rs. 100000/- each. Total TDS is to be made @ 10% i.e. (100000*4)*10%=40000/-. Now assume that total TDS which we have deposited with the department u/s 194A is 40200/-. We can pass the following entries.
Interest A/c Dr. 400000 To TDS (for A to D) 40200 To A 90000 B 90000 C 90000 D 89800
TDS cert to D can be issued for Rs. 10200 and to rest parties for Rs. 10000/-.
In income tax there is not any restriction on deducting TDS at a rate higher than prescribed i.e. 10%.
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