Adjustment of excess tds paid

Yes you can adjust the TDS liability of the subsequent months against the excess TDS made & paid.  For instance if TDS on payment made to a contractor is made for Rs 5000 instead of 3000, then the excess TDS made for Rs 2000 can be adjusted against the future TDS liability arising in the subsequent months for that contractor & not anyother contractor..

Originally posted by : Giridhar S Karandikar
	Yes you can adjust the TDS liability of the subsequent months against the excess TDS made & paid.  For instance if TDS on payment made to a contractor is made for Rs 5000 instead of 3000, then the excess TDS made for Rs 2000 can be adjusted against the future TDS liability arising in the subsequent months for that contractor & not anyother contractor..

Agree with Giridhar ... You can adjust the balancing amount in next Payment.......

Not at all any problem its a general practice... Go On.....

Thanks a lot.. Giridhar & Sanket...

Is there any provision in the Income Tax Act governing adjustment of TDS? If yes, pls quote the same.

I dont think it can be adjusted so, it can be claimed as refund from the Assessing Officer.