Higher deduction of tds

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Querist : Anonymous

Querist : Anonymous (Querist)

28 April 2014 if any one deduct tds @ 2% u/s 194C instead of 1% in case of individual, and deposit the same upto the due date. then what are the consequences of this higher deduction. and how that individual gets the benefit of that remaining 1%. and how the assessee adjust that excess deposit challan with the actual liability of tds which is to b deducted.

Sandeep Dharar

Sandeep Dharar (Expert)

28 April 2014 It is the mistake of deductor, ask him the reason of deducting at that rate.

Nikhil Kaushik

Nikhil Kaushik (Expert)

28 April 2014 well, there are two ways of dealing it:

1. to adjust the same against future payments.

2. to file TDS return with the correct rate only and refund the excess to the deductee and lateron claim refund of the excess TDS from govt by filing Form 26B online.

Querist : Anonymous

Querist : Anonymous (Querist)

28 April 2014 that means for the moment we have to pay the deductee from our pockets. and afterwards we can claim the excess amount from the govt by filling 26B...??

Nikhil Kaushik

Nikhil Kaushik (Expert)

28 April 2014 alternatively, you can wait till you receive the refund from the govt! its between you and the deductee.

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