My Co. wrongly deducted the TDS from the party means the said party was an real estate broker so insted of sec 194H, I had deducted under sec 194I @20.60%.
So, how can i deposit the TDS amount(i.e in Bank) and how can I set up this problem?. How can the party will get back the excess amount????????
24 March 2008
Wrong amount debited to party and credited to TDS account for TDS , can be rectified by rectification entry , because the TDS is still to be paid.
24 March 2008
yes pass a rectification enrty for the same and refund the excess amount deducted to the customer account. Debit: TDS Payable U/S 194 I with the amount of TDS wrongly deducted Credit: TDS payable U/S 194 H with the amount of TDS that should actually had been deducted. Credit: Party A/C with the difference.
After this entry the balances in the TDS payable and the party account would be set right. Now pay the party the excess TDS amount (as is credited to the party A/C in the entry above) that was wrongly deducted from him. Regards Prasad.R
25 March 2008
You have to pay the deducted amount to central govt. (in bank) through a challan. in that challan you have to mention all the details about on what status you deducted.
That challan format will be available in www.incometaxindia.gov.in
25 March 2008
Thanks, But there is another problem my boss had already handed me the TDS cheque with the wrong amount to deposit,so, what can i do now???????
26 March 2008
The very first sollution is arrange a new check of right amount. but due to some reason if this is not possible, you can deposit excess amount. here you can deposit excess amount against those head in which you think that in future there will be further deduction. you can adjust this amount in future against liability of that time.
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