Tds excess deposited

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CA. Sonali Gupta

CA. Sonali Gupta (Querist)
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22 August 2012 hi,

can tds excess deposited by refunded or adjusted in next qtr

B.COM, ACA, DISA Namrata

B.COM, ACA, DISA Namrata (Expert)
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22 August 2012 CIRCULAR NO. 2/2011 [F.NO. 385/25/2010-IT(B)], DATED 27-4-2011

The excess payment to be refunded would be the difference between:
(i) the actual payment made by the deductor to the credit of the Central Government; and
(ii) the tax deductible at source.

In case such excess payment is discovered by the deductor during the financial year concerned, the present system permits credit of the excess payment in the quarterly statement of TDS of the next quarter during the financial year.

In case, the detection of such excess amount is made beyond the financial year concerned, such claim can be made to the Assessing Officer (TDS) concerned. However no claim of refund can be made after two years from the end of financial year in which tax was deductible at source.

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Arun Biyani

Arun Biyani (Expert)
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22 August 2012 yes it can be adjusted in nest quarter..

CA. Sonali Gupta

CA. Sonali Gupta (Querist)
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23 August 2012 hi all
pls tell me what is the procedure to claim the credit in next month whether system will accept bchallan for back date

also tell me the procedure for refund the same

Aashok Kumar Sharma online

Aashok Kumar Sharma

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27 July 2025 Hey! Here’s a clear summary on **excess TDS deposit — adjustment and refund procedures**:

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### 1. **Adjustment in Next Quarter**

* If you discover excess TDS payment **within the same financial year**, you **can adjust** the excess amount against your TDS liability in the **next quarter**.
* While filing the next quarter’s TDS return, enter the details of the excess tax deposited (with challan details).
* The system will allow you to **adjust** the excess amount against future TDS dues.

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### 2. **Refund Procedure**

* If excess payment is discovered **after the financial year** is over, you **cannot adjust** it in the next quarter (since that year is closed).
* You need to file a **refund claim** with the Assessing Officer (TDS) of your jurisdiction.
* **Important:** You must file the refund claim **within 2 years** from the end of the financial year in which the TDS was deducted.
* You will need to submit the refund claim along with:

* Details of challan(s),
* Proof of excess payment,
* Copies of TDS returns filed.

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### 3. **Regarding Back-Dated Challans**

* The system may or may not accept challan entries with a back date while filing returns.
* Usually, when adjusting excess TDS, you enter the original challan details (date, challan number).
* If the system rejects the back date, you should contact the **TDS NSDL helpdesk** or your software support for guidance on how to enter the excess amount adjustment.

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### Summary of Circular Reference

* **Circular No. 2/2011 dated 27-Apr-2011** covers this procedure.
* Excess TDS discovered **within FY** = adjustment in next quarter allowed.
* Excess TDS discovered **after FY** = claim refund from AO within 2 years.

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If you want, I can help draft the refund application format or help with the adjustment entries in the return.

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**Need help with software entry or refund letter?** Just ask!

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