TDS related query on tds deducted and return filed but later on credit note issued

This query is : Resolved

Quick Summary

If you've deducted and paid TDS, then filed your tax return, but later receive a credit note for that transaction, you generally cannot reverse the TDS. The recipient of the TDS can claim the full amount in their tax return. Reversing TDS is typically only possible if the payment itself is refunded.

Pooja Bahukhandi

Pooja Bahukhandi (Querist)
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01 August 2025 if tds is deducted and paid and return is also filed against it but later on we received its credit note on another quarter than should we reverse TDS

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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01 August 2025 In case you deducted and deposited excess TDS due to a subsequent credit note, the party to whom TDS was credited can claim the entire deducted TDS in their tax return. There is generally no mechanism to reverse the TDS for credit notes issued after filing the return, unless the payment is actually refunded.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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24 September 2025 Good Luck...

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