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)
Follow

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.

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
Follow

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:

---

### ✅ **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**.

---

### ✅ **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).

---

### 🚫 **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**.

---

### ✅ **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.

---

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

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Rakesh Bansal

Rahul Kulkarni

Dhairya Sanghvi

Ravi

nandeesh mashyal

Subscribe Now

Tds

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA