TDS
This query is : Resolved
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 ???
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 ???
20 January 2009
only payment of one section can be adjusted & not with other section.
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 ???
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 ???
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.
---
If you want, I can help you draft a reconciliation process or a format to track these adjustments. Would you like that?
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.
---
If you want, I can help you draft a reconciliation process or a format to track these adjustments. Would you like that?
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- ITR 3 VALIDATION
- GST registration /aadion a new place of business in the same state and city
- Brokage income from sale and purchase of property
- LTCG EXEMPTION AND TAX APPLICABILITY
- ITR-4- U/s.44AD- Financial Particulars of Business
- Error while validating
- Purchase of Time Deposit in AIS
- UNUTILISED CAPITAL GAIN FD
- Preparation of PL BS and presentation in ITR
- Regarding Withdrawal of unused amount in Capital Gain account scheme
- "Please ensure that the Total of the Deductions u/s 54F match the same in Table D in Sch CG"
- Composition Dealer GST Annual Return Filing process
- Stamp Duty & Registration Fees on Sale Deed
- GST on Restaurant service
- LTCG - Loss on Equity
- Revision under Section 264 in The Income Tax Act, 1961
- TDS under section 195.
- Filing GST Returns after death of proprietor
- Registered Required in GST Act
- Switch over to Composition Scheme
Trending Online Classes
-
Input Tax Credit, GST refunds and Recovery of refunds- Roadblocks and way outs
CA Nipun Arora03 September 2025 -
GST LIVE Certification Course - 43rd Weekdays Batch(With Govt Certificate)
Industry Expert15 September 2025
CAclubindia
