TDS

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BINAYAK (Querist)
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20 January 2009 ONE OF THE COMPANY IS DEPOOSITING TDS LIABILITY WITHOUT COMPUTING THE ACTUAL LIABILITY. SO THERE ARE MANY CASES OF SHORTFALLS AND EXCESS DEPOSITS OF TDS TILL DEC 08.( FY 2008-09) HOW CAN THE COMPANY ADJUST ITS BALANCE OF TDS PAYMENTS ???

CAN THE EXCESS DEPOSIT OF ONE SECTION BE ADJUSTED WITH SHORTFALL OF THE OTHERS ????

CAN THE DEPOSITS OF THE SAME SECTION BE ADJUSTED ON MONTHLY PAYMENTS WHERE THERE IS SHORTFALL AND EXCESS ???

Jitender

Jitender (Expert)
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20 January 2009 only payment of one section can be adjusted & not with other section.

BINAYAK

BINAYAK (Querist)
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Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
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26 July 2025 Here’s the clarity on adjusting TDS deposits and shortfalls:

1. **Adjustment between sections:**
**Not allowed.** Excess TDS deposited under one section (e.g., 194C) **cannot** be adjusted against shortfall under another section (e.g., 194J). TDS deposits are section-wise and need to be managed separately.

2. **Adjustment within the same section:**
Yes, excess deposit in one month **can** be adjusted against shortfall in another month **within the same section**. This means if you paid extra TDS for, say, April under section 194C, you can adjust it against less payment or shortfall in May under the same section.

3. **How to do the adjustment practically:**

* While filing TDS returns, ensure you report the actual deducted amounts.
* For excess payments, you can claim a refund from the Income Tax Department or adjust in subsequent payments within the same financial year under the same section.
* For short payments, deposit the balance amount immediately along with interest for late payment to avoid penalties.

4. **Reconciliation and documentation:**
Maintain a proper register of TDS payments and deductions to track excess and shortfall. This helps in smooth adjustment and audit compliance.

If excess TDS remains unadjusted, apply for refund through **Form 26B** after filing TDS returns.

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If you want, I can help you draft a reconciliation process or a format to track these adjustments. Would you like that?

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