TDS
This query is : Resolved
Kalaivani RAvichandran
(Querist)
28 May 2009
Hi, Can u plz let me know whether excess payment of TDS made in last year can be adjusted against current year's short payment?
28 May 2009
YEs, It can.
Message likes :
1 times
Kalaivani RAvichandran
(Querist)
28 May 2009
TDS deducted under the head salaries[192] but wrongly paid under the head professional services[94J]. Can this be rectified in any manner?
26 July 2025
This is a **very common issue** and yes, it **can be rectified** through **challan correction mechanism**.
---
### 🔧 Issue:
TDS deducted **under Section 192 (Salary)** was **wrongly deposited under Section 194J (Professional Fees)**.
---
### ✅ Solution: **Challan Correction Mechanism via TRACES / AO**
#### Two Options:
1. **Online correction through TRACES** – if your TAN is registered and the correction is permitted online.
2. **Manual request to AO (Assessing Officer)** – if online correction isn’t allowed.
---
### 📋 Steps to Rectify:
#### **A. Through TRACES (Preferred Way)**:
* Login to TRACES ([https://www.tdscpc.gov.in](https://www.tdscpc.gov.in))
* Go to **"Defaults > Request for Correction"**
* Select the **relevant statement and challan** where the wrong section code is used
* You can edit the **section code** (from 194J to 192) if correction for that challan is available
* Submit correction; **Digital Signature (DSC)** may be needed
#### **B. Manual Method via AO**:
If correction is **not allowed online**, then:
* Write a letter to your **TDS Assessing Officer (TDS Circle)**
* Attach:
* Copy of the **wrongly filed challan**
* Proof of TDS deduction under Section 192
* Copy of the **salary register/payroll**
* PAN-wise deduction details
* Request **reclassification** of the challan from Section 194J to 192
* AO will make backend correction on the **OLTAS system**
---
### ❌ Note:
* **You cannot adjust** excess TDS deposited under **one section** against **another section** on your own.
* **Section code** is critical, and mismatch will lead to **demand notices or defaults**.
---
### 📌 For Your First Question:
> **Can excess payment of TDS made in last year be adjusted against current year's short payment?**
No, **carry forward of TDS excess from one financial year to another is not allowed.**
You need to **file a refund claim** with your **TDS AO** in such cases using **Form 26B** via TRACES.
---
Would you like a **sample letter format** for AO request or **Form 26B filing help**?
---
### 🔧 Issue:
TDS deducted **under Section 192 (Salary)** was **wrongly deposited under Section 194J (Professional Fees)**.
---
### ✅ Solution: **Challan Correction Mechanism via TRACES / AO**
#### Two Options:
1. **Online correction through TRACES** – if your TAN is registered and the correction is permitted online.
2. **Manual request to AO (Assessing Officer)** – if online correction isn’t allowed.
---
### 📋 Steps to Rectify:
#### **A. Through TRACES (Preferred Way)**:
* Login to TRACES ([https://www.tdscpc.gov.in](https://www.tdscpc.gov.in))
* Go to **"Defaults > Request for Correction"**
* Select the **relevant statement and challan** where the wrong section code is used
* You can edit the **section code** (from 194J to 192) if correction for that challan is available
* Submit correction; **Digital Signature (DSC)** may be needed
#### **B. Manual Method via AO**:
If correction is **not allowed online**, then:
* Write a letter to your **TDS Assessing Officer (TDS Circle)**
* Attach:
* Copy of the **wrongly filed challan**
* Proof of TDS deduction under Section 192
* Copy of the **salary register/payroll**
* PAN-wise deduction details
* Request **reclassification** of the challan from Section 194J to 192
* AO will make backend correction on the **OLTAS system**
---
### ❌ Note:
* **You cannot adjust** excess TDS deposited under **one section** against **another section** on your own.
* **Section code** is critical, and mismatch will lead to **demand notices or defaults**.
---
### 📌 For Your First Question:
> **Can excess payment of TDS made in last year be adjusted against current year's short payment?**
No, **carry forward of TDS excess from one financial year to another is not allowed.**
You need to **file a refund claim** with your **TDS AO** in such cases using **Form 26B** via TRACES.
---
Would you like a **sample letter format** for AO request or **Form 26B filing help**?
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