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Excess interest paid in challan

23 June 2025

If i have paid a challan with interest only for TDS, with interest being more than what is actually required, can i use the excess interest paid in next quarter's tds.

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3 Replies

Rama chary Rachakonda (Master in Accounts & high court Advocate) (8358 Points)
Replied 23 June 2025

Excess Interest Paid on TDS Challan If you've paid excess interest on a TDS challan, you can adjust it against future tax liabilities, including TDS payments for the next quarter. Adjusting Excess Interest -

*Excess Interest Adjustment*: You can claim credit for the excess interest paid in the subsequent quarter's TDS payment. - *No Separate Refund Claim*: You don't need to claim a refund for the excess interest separately. Instead, you can adjust it against your future TDS liabilities. Procedure for Adjustment -

*Track Excess Interest*: Keep records of the excess interest paid, including the challan details and amount. -

*Adjust in Next Quarter's Payment*: When making the next quarter's TDS payment, you can adjust the excess interest paid earlier.

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Rama chary Rachakonda (Master in Accounts & high court Advocate) (8358 Points)
Replied 23 June 2025

*Track Excess Interest*: Keep records of the excess interest paid, including the challan details and amount. -

*Adjust in Next Quarter's Payment*: When making the next quarter's TDS payment, you can adjust the excess interest paid earlier.

YOKESH S : IT DEPT (3 Points)
Replied 23 June 2025

Thank you. Also is it necessary to mention the interest only challan in form24q text file because the interest only challan is not associated with any employees.