Excess Interest paid on TDS challan- Can it adjusted against tax payable

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If you've paid excess interest on a TDS challan, unfortunately, this cannot be adjusted against your main tax liability or future interest payments. The interest paid under Minor Head 400 is specifically for delayed TDS deposits. While excess tax payments might be adjustable, excess interest paid generally cannot be refunded or carried forward. You'll need to correct the error in your TDS return filing to reflect the actual interest due.

Rajeswary Ganesan

Rajeswary Ganesan (Querist)

26 July 2025 I have paid interest in 194J challan while making monthly TDS payment, It is excess payment, Can I adjust the interest against tax payable in the next quarter.

Or interest paid is can be adjusted against interest only?

This is for FY 2024-25, Q1

how can make the correction now, kindly help

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

29 July 2025 Interest paid in TDS Challan (under Minor Head 400) is strictly for interest due on delayed TDS deposits and cannot be adjusted against the main tax (TDS, Minor Head 200) liability in future quarters.
If you have paid excess TDS (tax) amount, it may be adjusted in the same financial year, or you can adjust in subsequent periods according to certain limits and procedures.
You can neither adjust this against future tax/interest liabilities nor carry it forward to the next quarter or year for adjustment. There is also no statutory provision to claim a refund of excess interest paid; you will need to correct the error in the TDS return filing to reflect actual interest liabilities.

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Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

25 September 2025 Good luck...

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