TDS paid in excess of tds deducted

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Anita Kulkarni (Querist)
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21 June 2016 hello, TDS deducted was Rs.5000 but TDS deposited RS .50000 wrongly ,now how to claim refund of excess TDs deposited.

Ashwani Narnoli

Ashwani Narnoli (Expert)
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22 June 2016 You cannot claim refund, however you can utilise the excess amount while filing return for the next quarter for some other deductee

Anita Kulkarni

Anita Kulkarni (Querist)
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22 June 2016 but it's of last year...so AY will change so how can we utilise..for the next year.??

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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27 July 2025 Here’s how to handle the excess TDS deposited situation:

### Scenario:

* **TDS deducted**: Rs. 5,000
* **TDS deposited (paid)**: Rs. 50,000 (excess of Rs. 45,000)
* The excess deposit was for the **previous financial year**, not the current year.

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### Key points:

1. **Adjustment of Excess TDS:**

* Excess TDS deposited cannot be automatically refunded by just utilising it in the next quarter or year.
* Since this is for the **previous financial year/assessment year**, it **cannot be adjusted in future quarters** of a different financial year.

2. **Claiming Refund for Excess TDS Deposited:**

* The deductor (payer of TDS) can claim a **refund of the excess TDS deposited** by filing an application with the Income Tax Department.
* The claim is generally filed by submitting **Form 26R (Refund Application for TDS/TCS)** online on the TIN website or by writing to the Assessing Officer/CPC.
* You must provide proof of excess payment and details of TDS deduction and deposit.

3. **Documentation Required:**

* Copy of TDS certificates (Form 16A)
* Challan copy of TDS deposit
* TDS return filed
* Explanation letter for excess deposit and refund request

4. **Procedure:**

* Log in to the TDS Reconciliation Analysis and Correction Enabling System (TRACES) or TIN website.
* File Form 26R for the relevant AY.
* Attach supporting documents.
* Once processed, the refund will be credited to the bank account mentioned in the TAN registration.

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### Summary:

* You **cannot adjust excess payment of last year in the current year returns**.
* You need to **file for a refund** of the excess deposited TDS.
* Process takes time (usually 2-3 months) once application is submitted correctly.

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If you want, I can help you draft the refund request or guide you step-by-step on filing Form 26R online. Would you like that?

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