Tds query
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
21 April 2012
Query is relating to TDS return filling.
An Assesse whose TDS return is pending for filling for the FY 2011-12 till now & whose TDS deducted comes to Rs 45,200/- of all 4 Qtr [20000+10000+10000+5300]composing of section like 194A & 194I.
But the said TDS amount was paid by assessee in various challans with different amount which is not matching with the TDS quarter wise.
Query:
1. Does adjustment with above mentioned different challan is correct?
2. If not what are the consequences?
3. For adjusting challan, one challan is adjusted with more then 1 qtr return.
Please advise to solve the query & request to solve it in full and do not give part answere.
waiting for earliest response.
An Assesse whose TDS return is pending for filling for the FY 2011-12 till now & whose TDS deducted comes to Rs 45,200/- of all 4 Qtr [20000+10000+10000+5300]composing of section like 194A & 194I.
But the said TDS amount was paid by assessee in various challans with different amount which is not matching with the TDS quarter wise.
Query:
1. Does adjustment with above mentioned different challan is correct?
2. If not what are the consequences?
3. For adjusting challan, one challan is adjusted with more then 1 qtr return.
Please advise to solve the query & request to solve it in full and do not give part answere.
waiting for earliest response.
21 April 2012
Dear Friend, First find out whether the amount deposited as TDS was under correct head. If TDS amount payable with Challans are not matching or in case there was less payment of TDS in one quarter , then you can pay the interest for the same. If TDS submitted is not under correct head then you have to rectify the TDS return. Thanks
21 April 2012
The expert is correct and I agree with him
Querist : Anonymous
Querist :
Anonymous
(Querist)
25 April 2012
thanks for replying to the query by the experts but it is not fully solved. As i asked whether "adjusting various Quater TDS liabilities with one TDS challan is correct or not ? and what are the consequences of it?"
So request to please solve the query in full.
So request to please solve the query in full.
28 July 2025
Got it — you want a clear, complete answer about whether **adjusting TDS liabilities of different quarters using one challan** is allowed, and what the consequences are if this is done.
Here’s the full explanation:
---
### 1. **Can TDS Challan be Adjusted Against Multiple Quarters?**
* **No, ideally each TDS challan should be linked to the correct quarter for which the tax is deducted.**
* When you pay TDS, you are supposed to deposit it against a particular quarter and section (e.g., 194A, 194I) — this helps the Income Tax Department reconcile the payment with the TDS return filed for that quarter.
* However, practically, the system **does allow** the use of one challan for adjusting dues of multiple quarters, but this leads to reconciliation problems on TRACES portal and may cause your TDS return to be rejected or generate mismatch notices.
* Also, if the challan is not correctly matched with the quarter-wise liability, then TDS credits shown to deductees in Form 26AS may not match their actual deductions in each quarter.
---
### 2. **What Are the Consequences of Adjusting Multiple Quarters with One Challan?**
* **Mismatch of TDS credits:** Deductees may find discrepancies in Form 26AS, leading to complaints and notices.
* **Return rejection or processing delays:** The Income Tax Department’s system might reject your TDS return or issue mismatch letters due to non-alignment of challan and quarter-wise details.
* **Difficulty in rectification:** You will have to file correction returns with proper challan details to fix the mismatch, which is cumbersome.
* **Potential penalty or interest:** If the TDS payment is delayed or wrongly accounted, you may have to pay interest under Section 201(1A).
---
### 3. **What Should Be Done?**
* **Deposit TDS for each quarter separately:** Always pay the TDS amount against the correct quarter and section using separate challans or at least correctly specify the quarter in the challan.
* **If you have already paid with a single challan for multiple quarters:**
* **File correction statements:** Rectify the TDS return by filing correction statements quarter-wise with proper challan details.
* **Use the TRACES portal to correct challan details:** The online TRACES facility allows you to re-allocate challan amounts to respective quarters (subject to certain limits).
* **Pay interest for delayed deposits:** If any amount is short or delayed, pay interest under Section 201(1A).
* **Maintain proper documentation:** Keep records of challans, TDS certificates, and returns to support reconciliation.
---
### Summary Table
| Issue | Ideal Practice | Consequence if not followed |
| -------------------------------------------- | ---------------------------------------- | ------------------------------------------- |
| Paying TDS with challan per quarter | Pay TDS challan specific to each quarter | Mismatch in Form 26AS, return rejection |
| Adjusting multiple quarters with one challan | Not recommended | Return processing delay, notices, penalties |
---
### Final Advice:
* Always ensure **quarter-wise payment** of TDS challans.
* If already done otherwise, **file correction returns ASAP**.
* Check the **TRACES portal** for mismatch details and correction options.
* For complicated cases, **consult a tax expert** or CA to avoid penalties.
---
If you want, I can guide you step-by-step on how to file correction statements or use TRACES for challan correction. Would you like that?
Here’s the full explanation:
---
### 1. **Can TDS Challan be Adjusted Against Multiple Quarters?**
* **No, ideally each TDS challan should be linked to the correct quarter for which the tax is deducted.**
* When you pay TDS, you are supposed to deposit it against a particular quarter and section (e.g., 194A, 194I) — this helps the Income Tax Department reconcile the payment with the TDS return filed for that quarter.
* However, practically, the system **does allow** the use of one challan for adjusting dues of multiple quarters, but this leads to reconciliation problems on TRACES portal and may cause your TDS return to be rejected or generate mismatch notices.
* Also, if the challan is not correctly matched with the quarter-wise liability, then TDS credits shown to deductees in Form 26AS may not match their actual deductions in each quarter.
---
### 2. **What Are the Consequences of Adjusting Multiple Quarters with One Challan?**
* **Mismatch of TDS credits:** Deductees may find discrepancies in Form 26AS, leading to complaints and notices.
* **Return rejection or processing delays:** The Income Tax Department’s system might reject your TDS return or issue mismatch letters due to non-alignment of challan and quarter-wise details.
* **Difficulty in rectification:** You will have to file correction returns with proper challan details to fix the mismatch, which is cumbersome.
* **Potential penalty or interest:** If the TDS payment is delayed or wrongly accounted, you may have to pay interest under Section 201(1A).
---
### 3. **What Should Be Done?**
* **Deposit TDS for each quarter separately:** Always pay the TDS amount against the correct quarter and section using separate challans or at least correctly specify the quarter in the challan.
* **If you have already paid with a single challan for multiple quarters:**
* **File correction statements:** Rectify the TDS return by filing correction statements quarter-wise with proper challan details.
* **Use the TRACES portal to correct challan details:** The online TRACES facility allows you to re-allocate challan amounts to respective quarters (subject to certain limits).
* **Pay interest for delayed deposits:** If any amount is short or delayed, pay interest under Section 201(1A).
* **Maintain proper documentation:** Keep records of challans, TDS certificates, and returns to support reconciliation.
---
### Summary Table
| Issue | Ideal Practice | Consequence if not followed |
| -------------------------------------------- | ---------------------------------------- | ------------------------------------------- |
| Paying TDS with challan per quarter | Pay TDS challan specific to each quarter | Mismatch in Form 26AS, return rejection |
| Adjusting multiple quarters with one challan | Not recommended | Return processing delay, notices, penalties |
---
### Final Advice:
* Always ensure **quarter-wise payment** of TDS challans.
* If already done otherwise, **file correction returns ASAP**.
* Check the **TRACES portal** for mismatch details and correction options.
* For complicated cases, **consult a tax expert** or CA to avoid penalties.
---
If you want, I can guide you step-by-step on how to file correction statements or use TRACES for challan correction. Would you like that?
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