TDS
This query is : Resolved
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
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**?
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
- Refund Annexure-B
- House Property Reporting in ITR
- TDS Claim year
- Liable to deduct tds and 44ADA
- Rent lease agreement
- Refund of 20%pre-deposit paid for stay application
- TDS Challan Code
- Nomination of Bank for refund in itr 2
- Section 56(2) of the Income tax Act 1961 , Gift to relative .
- Is Interest applicable for payment made through credit ledger vide DRC03 for FY 2020-21 & 2021-22
- Internship/Academic shown in Salary Pay Slip of a Doctor
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
