About TDS Wrong deduction

i think entry is not ok.... 

as when u deducted TDS u must have passed this entry

ABC A/c Dr

  To TDS Payable A/c

When u paid the tds to deptt u passed:

  TDS Payable   A/c        Dr

      To Bank

So TDS Paable a/c has been closed but if now pass any entry then it will again open this a/c and will stay o/s ...

There is no need to pass any entry , excess deduction of tds never creates a problem and u have paid to the deptt also. Issue tds certificate to party of higher amt.......

but i deducted more amount from ABC a/c.so need to repay

THE CORRECT ENTRY SHOULD BE IF TDS DEDUCTED IS @ 2%

EXPENSE A/C DR 15000

       TDS PAYABLE CR 300

       ABC A/C CR 14700  

NO NEED TO REPAY ISSUE HIM CERTIFICATE OF HIGHER AMOUNT.

I agree with both of you

See. if you ve deducted on a higher side and remitted to the department. you cannot claim back from department..you are very well going to issue cerfiticate to him for deduction so the deductee need not be worried about the amount.  If you ve not remitted to department general accounting entries will do. It all depends whats the basic entry you ve passed for deduction.

Just issue him certificate of higher amount (What you have deducted). He would claim this amount on the basis of TDS Certificatge. So there would be no prob..

if further payment to be maden then it will adjust with same otherwise no problem in case of higher deduction of tds.../

U have two options available--------

1. issue the certificate of higher amount as deducted by you

2. adjust the tax deducted if further payment to the same person is to be made...

So dont worry at all......

thanks for your views sir, i explain how i passed the Entry,

                 1)     Sub,con Expenses a/c   25000/-

                                       to TDS Payable a/c 500/-

                                       to ABC a/c          24500/-

here i deducted 2% insted of 1%.To rectify that mistake i passed the following entry,

                 2)  TDS Payable a/c       250/-

                                    to ABC a/c          250/-

now my question is the above enty is right or wrong,kindly give ur suggestion

Originally posted by : Pavan Kumar Gidugu
	thanks for your views sir, i explain how i passed the Entry,                  1)     Sub,con Expenses a/c   25000/-                                        to TDS Payable a/c 500/-                                        to ABC a/c          24500/- here i deducted 2% insted of 1%.To rectify that mistake i passed the following entry,                  2)  TDS Payable a/c       250/-                                     to ABC a/c          250/- now my question is the above enty is right or wrong,kindly give ur suggestion

if you already deposited the 500/- to income tax deptt. you cant debit the Tds payble account with 250/-if you hve not deposited the 500/- rs then only one entry you hve to pass..

your above entry is wrong..

i already paid to income tax dep;

Originally posted by : Pavan Kumar Gidugu
	i already paid to income tax dep;

if you already deposited the tds of Rs500/- then u cant claim the amount from the income tax depptt.

now you can give tds certificate of higher amount..

i deducted 20000/-extra,he is asking to repay the extra amount

Your first entry is right but already you have deducted TDS amount from exp. so you should be pay full amount of tds. i.e

Tds payable A/C .........Rs 500

       To Bank                                       Rs. 500.

And you should issued a certificated to ABC of Rs 500.00