Tds-notice short payment

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

05 April 2014 Sir,

we have received notice for IT dept short payment in 3 rd quarter for salaries 40000/- Rs.2000/- short

salary paid for DEc 13 Rs.40000/- TDS deducted 2000/- from employee and same deposited in the bank
Jan month we have paid Rs.45000/- but we deducted from 6500/- and same deposited in bank that will come in 4 th quarter

Now, can i adjust the amount which was already paid or if i will paid it will be excess.

Pl suggest , thanks in advance

Rupesh Jain

Rupesh Jain (Expert)
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05 April 2014 you can adj the challan in particular month it cannot c/f in next month. '

I am not under stand
how can you show more amount than deposited in particular month.

Querist : Anonymous

Querist : Anonymous (Querist)

10 April 2014 we have deducted TDS short Rs.2000/- in 3rd quarter and we have deducted excess in 4th quarter to compensate short.

Now we have received notice for short payment since as we have deducted Rs.2000/- to compensate short and same deposited

how do we adjust.

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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27 July 2025 Got it, here’s a clear explanation for your TDS short payment and adjustment issue:

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### Situation Recap:

* **3rd Quarter:** Salary paid ₹40,000, TDS deducted ₹2,000 (short by ₹2,000), but you deposited ₹2,000 correctly.
* **4th Quarter:** Salary paid ₹45,000, TDS deducted ₹6,500 (which includes excess TDS to compensate for earlier shortfall), and deposited.
* You received a **notice for short payment** of ₹2,000 in 3rd quarter.

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### Key Point About TDS Deposits:

* **TDS must be deposited in the same quarter it is deducted.**
* You **cannot adjust excess TDS deducted in one quarter against the shortfall of a previous quarter**.
* Every quarter’s TDS liability is separate and should be settled within that quarter.

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### What you should do:

1. **Pay the short TDS amount of ₹2,000 separately for the 3rd quarter** with applicable interest (if any).
2. The excess TDS deducted and deposited in the 4th quarter **cannot be used to adjust the 3rd quarter short payment**.
3. You can show the excess deposit in the 4th quarter properly in your TDS returns.
4. File a **revised TDS return for the 3rd quarter** showing the additional TDS payment (₹2,000 + interest).
5. After this, the notice for short payment should get resolved.

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### Why is this necessary?

* The Income Tax Department tracks TDS **per quarter**.
* Adjustments across quarters are not allowed.
* Interest is payable on the late deposit of TDS for the 3rd quarter shortfall.

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### Summary:

* Pay the shortfall for 3rd quarter separately.
* Don’t try to adjust it against 4th quarter deposits.
* File revised return for 3rd quarter.
* Pay interest for late deposit of TDS for 3rd quarter shortfall.

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If you want, I can help you draft a reply to the notice or assist with filing the revised return. Just say the word!

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