Surplus TDS U/S 194M

Save Share

This query is : Resolved

Quick Summary

This discussion addresses a situation where excess TDS of Rs. 75,000 was paid under Section 194M due to a TDS rate discrepancy between Form 26QD and Form 16D. The contractor is demanding the differential TDS amount. The core question is how to utilise this surplus TDS. While Form 26QD can be rectified, the recommended method to claim a refund for the excess TDS paid is by filing Form 26B.

Ashish Kumar Pandey

Ashish Kumar Pandey (Querist)
Follow

06 December 2024 Dear Sir,
As an individual Excess TDS deduct/paid u/s-194M of a contractor and form 26QD filed properly.
Case:-
Bill Date 25.09.2024
Bill Received date-05.10.2024
Bill amount 2500000/-
TDS amount- 125000/-
TDS Deduct/Paid @ 5% due to Sep Bill but received on Oct-2024
Form 26QD Filed with 5% reflect and shown
But Now, Form 16D Shown 2% TDS Rate and TDS amount 50000/-
Excess TDS of Rs. 75000/- Shown in Challan with Traces

Party Demanding Differential TDS of Rs. 75000/- to us
Question is how to utilised this surplus TDS amount.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

07 December 2024 File form 26B online...
In case of refund related to tax deducted under section 194M of the Act for which Form No. 26QD has been filed by the deductor,—
(a) Permanent Account Number may be furnished in place of Tax Deductions and Collection Account Number;
(b) in column II, in sub-column (5) relating to the 'period', may be left blank;
(c) in column II, in sub-column (7) relating to the 'Receipt number of relevant statement', furnish acknowledgement number of Form No.26QD.

Ashish Kumar Pandey

Ashish Kumar Pandey (Querist)
Follow

07 December 2024 Sir,
we have already filed form 26QD on time.
need suggestion for how to use Surplus TDS of Rs. 75000/- in future, because party demanding diff. TDS from us.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

07 December 2024 This is what have been replied earlier.
The excess amount can be refunded back to the payee/ tax deductor by filing form 26B.

Ashish Kumar Pandey

Ashish Kumar Pandey (Querist)
Follow

10 December 2024 Dear Sir,

Can we revise form 26QD.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

10 December 2024 Yes, it can be rectified, but to get refund of the excess amount you will have to fill form 26B as stated above.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now