carry forward TDS

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This query is : Resolved

Naveen Ahlawat (Querist)

23 December 2009 is there any rule in income tax we can carry forward excess deposit TDS in previous year to current year????

Please reply asap.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

23 December 2009 No provision in the act for such carry forward.

Naveen Ahlawat

Naveen Ahlawat (Querist)

23 December 2009 thanks for your kind cooperation sir.

Prasad R

Prasad R (Expert)

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.

Manikanta Raju CA,CWA,(CS)

Manikanta Raju CA,CWA,(CS) (Expert)

23 December 2009 No such provision, file a return and show th eentire TDS paid as deduction and claim the refund.

Heera Nahariya

Heera Nahariya (Expert)

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%.