TDS paid in excess of tds deducted

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Anita Kulkarni (Querist)

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)

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)

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 online

Aashok Kumar Sharma

(Expert)

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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