TDS deposit in excess of TDS deducted.

This query is : Resolved 

Querist : Anonymous (Querist) 14 June 2010

Dear Sir,

Our company had by mistake deposit TDS on Salary in excess of TDS deducted in December 2009 and adjust the same in Jan - Mar 2010 in the TDS Return for IIIrd and IV quarter, but there is still a balance of Rs. 45000/- is lying unadjusted.

Now what to do in such a situtation?


1.This excess amount of TDS be adjusted from the TDS liability of next Financial Year?
2.This excess amount be adjusted from any other tax liability (like Income Tax on PGBP)?

Simplly we have to file a claim for refund of the same.

What is the procedure to be followed for filling of refund of excess TDS deposited.

Please help

Thaks in advance.

14 June 2010

1) No you can't c/f it to next FY .
2) No, you can't adjust it from any type of tax liablity except you can give credit of this tds (salary) to a salaried employee or director, he will claim refund in his return or adjust his any tax laiblity.

You have to write a letter for claiming refund of excess TDS to your Assessing office.

Querist : Anonymous (Querist) 14 June 2010

Dear Sir

this means that we have to file our TDS return showing TDS deposited in excess of TDS deducted.

The amount of TDS adjustment of TDS payable for the month Jan to Mar 2010 from excess TDS deposited is correct action.

How much processing time the department takes for such refund?

Should we shows this excess TDS as current assets or adjust it from income tax liability (current liability) in the Balance Sheet.

CMA Ramesh Krishnan (Expert)
14 June 2010

you need to show excess deposit only in the TDS return for matching challan and make on application to the Concern ITO regarding this and we cannot judge the time limit for this case you need to wait till the department reply and excess TDS can be show in Current asset as receivable

15 June 2010


A. CBDT issued circular No 285 [F No 275/77/79-ITB] dt 21/10/1980 which is given below and self explainatory

"Procedure for regulating refund of amounts paid in excess of tax deducted and/or deductible
• 1. The Board have been considering the manner of refunding the amount paid in excess of the tax deducted and/or deductible (whichever is more) under sections 192 to 194D of the Income-tax Act. The Board are advised that such excess payment can be refunded, independently of the Income-tax Act, to the person responsible for making such payment subject to necessary administrative safeguards.

• 2. In suppression of the earlier instruction on the subject, the following procedure is laid down to regulate the refund of such excess payments.

• 3. The excess payment would be the difference between the actual payment made by the deductor and the tax deducted at source or that deductible, whichever is more. This amount should be adjusted against the existing tax liability under any of the Direct Tax Acts. After meeting such liability the balance amount, if any, should be refunded to the assessee.

• 4. Where the tax is deducted at source and paid by the branch office of the assessee and the quarterly statement/annual return (in case of salaries) of tax deduction at source is filed by the branch, such branch office would be treated as a separate unit independent of the head office. After meeting any existing tax liability of such a branch, which would normally be in relation to the deduction of tax at source, the balance amount may be refunded to the said branch office. The Income-tax Officer, who will refund the amount, would be the one who receives the quarterly statement/annual return (in case of salaries) of tax deduction at source from that branch office and keeps record of the payments of tax deduction at source made by that branch.

• 5. The adjustment of refund against the existing tax liability should be made in accordance with the present procedure on the subject. A separate refund voucher to the extent of such liability under each of the direct taxes should be prepared by the Income-tax Officer in favour of the income-tax department and sent to the bank along with the challan of the appropriate type. The amount adjusted and the balance, if any, refunded would be debit able under the sub-head Other refunds below the minor head Income-tax on companies major head 020Corporation Tax or below the minor head Income-tax other than Union Emoluments major head 021Taxes on incomes other than corporation tax according as the payment has originally credited to the major head 020Corporation tax or the major head 021Taxes on incomes other than corporation tax.

• 6. Since the adjustment/refund of the amount paid in excess would arise in relation to the deduction of tax at source, the recording of the particulars of adjustment/refund should be done in the quarterly statement of TDS/Annual return (in case of salaries) under the signatures of the Income-tax Officer at the end of the statement, i.e., below the signatures of the person furnishing the statement."

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

Click here to login now

Similar Resolved Queries :

close x
Get Income Tax App    |    x