TDS

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Kalaivani RAvichandran (Querist)
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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?

CA CS CIMA Prakash Somani

CA CS CIMA Prakash Somani (Expert)
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28 May 2009 YEs, It can.

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Kalaivani RAvichandran

Kalaivani RAvichandran (Querist)
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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?

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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26 July 2025 This is a **very common issue** and yes, it **can be rectified** through **challan correction mechanism**.

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### 🔧 Issue:

TDS deducted **under Section 192 (Salary)** was **wrongly deposited under Section 194J (Professional Fees)**.

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### ✅ 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.

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### 📋 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**

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### ❌ 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**.

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### 📌 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.

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Would you like a **sample letter format** for AO request or **Form 26B filing help**?

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