Tds

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

28 September 2015 Please any one tell the solution

tds of one party has been paid more than its deducted amount around rs. 25000/-

Is this excess amount can be utilised in next year or forgot the amount.

pls suggest me its urgent..

I will be thankful

CA Mehta Ankur N.

CA Mehta Ankur N. (Expert)
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28 September 2015 U Just suggest the person whose TDS is deducted that, claim in his return of income & u give debit note to him/her.

Easy way is this.

Asha Kanta Sharma

Asha Kanta Sharma (Expert)
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26 July 2025 If **TDS has been paid in excess for a party** (i.e., **more than what was actually deducted**), you have **two main options** to resolve the issue:

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### ✅ **1. Adjust in future TDS returns (same financial year only)**

* You **can adjust excess TDS paid** against future TDS liability **for the same section and same party** **within the same financial year**.
* However, \*\*carry forward to next financial year is **not allowed**.
* This is supported by **CBDT Circular No. 285 dated 21-10-1980**.

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### ✅ **2. Apply for Refund (if not adjustable within FY)**

If it’s not possible to adjust within the same financial year:

* You can **apply for a refund** from the **Income Tax Department**.
* This requires filing an application with your **Assessing Officer (TDS)** explaining the facts and providing supporting documents (challan copies, TDS return details, etc.).
* Refunds for excess TDS paid by **deductors** are **allowed under certain conditions** (e.g., demand not raised, party not claiming the same credit).

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### 🚫 **What you cannot do:**

* You **cannot carry forward** the excess TDS to **next financial year**.
* You **should not ignore** the amount; ideally, try to **adjust** or **claim refund**.

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### ✅ **Recommended Steps:**

1. Check if you have **upcoming TDS liability under the same section**.
2. If yes, adjust the excess amount while filing your **next TDS return (Form 26Q/24Q)**.
3. If not, **write a letter to the AO (TDS)** requesting **refund** of excess deposit with necessary proofs.

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Would you like a draft letter format to request a refund from the AO?

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