Tds related
This query is : Resolved
21 January 2014
I have got a case where in tds amount was deposited in excess of the actual liability, is that excess amount is elligible for setoff in next quater return.
Nikhil Kaushik
(Expert)
22 January 2014
yes you can adjust...in the next quarter return, mention the challan details in teh challan sheet and appropriate relevant tax amount in deductee sheet..
22 January 2014
but i have checked that such excess amount is only refundable not adjustable in any cf the case. however it can be adjusted for a particular Quater before filling the return bot not in the next quater
28 July 2025
Here’s a clear summary about **excess TDS deposited and whether it can be adjusted in the next quarter** based on the info you shared:
---
### Can Excess TDS be Adjusted in Next Quarter Return?
* **Official position (CBDT Circular 15/1995)** allows excess TDS deposited to be **adjusted within the same financial year**, but generally **only within the same quarter before filing the TDS return**.
* Once the TDS return for a quarter is filed, **you cannot adjust excess TDS in the next quarter's TDS return**.
* In that case, the excess amount is eligible **only for refund from the Income Tax Department**, and not for setoff/adjustment in subsequent quarters.
---
### Summary:
| Scenario | Adjustment Allowed? |
| ------------------------ | ----------------------------------------------------------------------------- |
| Before filing TDS return | Yes, excess TDS can be adjusted in the same quarter return. |
| After filing TDS return | No, excess cannot be adjusted in next quarter return. Refund must be claimed. |
---
### Practical Advice:
* **Always check your challan and TDS return before filing** to avoid excess payment.
* If excess payment is done, **revise the TDS return** (allowed within prescribed time limits) to correct the mistake.
* If revision window is over, file Income Tax Return and **claim refund** of excess TDS.
---
If you want, I can help you draft the entries or guide you on how to file for refund or revision. Would you like that?
---
### Can Excess TDS be Adjusted in Next Quarter Return?
* **Official position (CBDT Circular 15/1995)** allows excess TDS deposited to be **adjusted within the same financial year**, but generally **only within the same quarter before filing the TDS return**.
* Once the TDS return for a quarter is filed, **you cannot adjust excess TDS in the next quarter's TDS return**.
* In that case, the excess amount is eligible **only for refund from the Income Tax Department**, and not for setoff/adjustment in subsequent quarters.
---
### Summary:
| Scenario | Adjustment Allowed? |
| ------------------------ | ----------------------------------------------------------------------------- |
| Before filing TDS return | Yes, excess TDS can be adjusted in the same quarter return. |
| After filing TDS return | No, excess cannot be adjusted in next quarter return. Refund must be claimed. |
---
### Practical Advice:
* **Always check your challan and TDS return before filing** to avoid excess payment.
* If excess payment is done, **revise the TDS return** (allowed within prescribed time limits) to correct the mistake.
* If revision window is over, file Income Tax Return and **claim refund** of excess TDS.
---
If you want, I can help you draft the entries or guide you on how to file for refund or revision. Would you like that?
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