can any one tell me consquences of deducting tds at higher rate then actual?
for eg if i deduct tds at 10% instead of @ 2%?
then what.....?
Suman Khurana
(ACS)
(209 Points)
Replied 17 August 2009
hi
i also want to know the treatment of excess amount of tax deducted.
| Originally posted by :Kaya | ||
| " | EVEN I GOT THE SAME DOUBT. | " |
FRIENDS. I THINK I CAN SOLVE UR DOUBTS WITH THE EXAMPLE:
AS PER SEC 194C, TDS RATE IS 2% FOR JOBWORK ETC. IF U DEDUCT TAX @ 10% BY MISTAKE, IT WILL ONLY AFFECT UR CREDIT AS A CA. THERE IS NO PROVISION FOR EXCESS DEDUCTION IN THE IT ACT. THE DEDUCTEE IS EMPOWERED TO GET THE REFUND OF EXCESS TAX DEDUCTED FROM THE DEDUCTOR ONLY IF THE DEDUCTOR HAS NOT ISSUED THE CERTIFICATE FOR THE EXCESS DEDUCTION.
RITESH KOTHARI
(B.COM, FCA, DISA(ICAI))
(778 Points)
Replied 22 August 2009
WHATEVER TAX HAS BEEN DEDUCTED YOU HAVE TO DEPOSIT IT TO THE TREASURY. THE DEDUCTEE WILL CLIAM IT IN HIS/HER RETURN. THE ONLY CASE THE DEDUCTEE COULD CLAIM IT BACK FROM THE DEDUCTOR IS WHEN THE DEDUCTOR HAS NOT ISSUED TDS CERTIFICATE FOR THE EXCESS AMOUNT. REGARDS, RITESH KOTHARI
Sandeep Marathe
(CA Final)
(423 Points)
Replied 24 August 2009
show amount deducted as tds in ur return, if it is excess deducted then u'll automatically get a refund. No worries
CAclubindia
