AA-42 How to Refund Excess Deduced TDS Amount

This discussion addresses how to account for a refund of TDS that was deducted in excess. The initial suggestion was to debit Accounts Receivable and credit TDS Receivable. However, the original poster clarified that debiting Accounts Receivable would increase the debtor balance, not reduce it as intended. The query seeks the correct journal entry, especially when the refund is received via cheque, to accurately reflect the transaction and balance the debtor account.