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Excess tds payment

koushik chatterjee (accountant) (25 Points)

27 April 2017

Paid TDS Rs.35000 for q.e.032017 in place of Rs.3500. Is there any scope to adjust or refund claim the excess amount

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7 Replies

Dev Sharma (4 Points)
Replied 27 April 2017

write any application for rectification u/s 154 to your respective Aassessing Officer .

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Dev Sharma (4 Points)
Replied 27 April 2017

*an application

Rahul Shah (Assistant Chartered Accountant) (196 Points)
Replied 27 April 2017

If a deductor has deposited excess amount of TDS , the procedure for getting refund was given in Board Circular 285 dated 21-1-1980.

Now CBDT has issued new circular in this respect.

This Circular 2/2011 is issued in suppression of Circular No 285 / 21-10-1980
It covers TDS sections 192 to 194LA
It does not cover TDS on non-resident payments i.e. section 192, 194E and 195 ( which are separately covered by circular No. 7/2007)
It covers refunds for the period upto 31-03-2010 .
Refunds for period thereafter will be covered under provision of section 200A which prescribes processing of TDS Statements

Excess to be refunded :

The excess payment to be refunded would be the difference between:

the actual payment made by the deductor to the credit of the Central Government; and
the tax deductible at source

Excess payment discovered during financial year

In case such excess payment is discovered by the deductor during the financial year concerned, the present system permits credit of the excess payment in the quarterly statement of TDS of the next quarter during the financial year.

Excess payment discovered after financial year

In case, the detection of such excess amount is made beyond the financial year concerned, such claim can be made to the Assessing Officer (TDS) concerned.
However no claim of refund can be made after two years from the end of financial year in which tax was deductible at source.

Safeguards to avoid double claims

To avoid double claim of TDS by the deductor as well as by the deductee, the following safeguards must be exercised by the Assessing Officer concerned:

The applicant deductor shall establish before the Assessing Officer that:

(i) it is a case of genuine error and that the error had occurred inadvertently;

(ii) that the TDS certificate for the refund amount requested has not been issued to the deductee(s); and

(iii) that the credit for the excess amount has not been claimed by the deductee(s) in the return of income or the deductee(s) undertakes not to claim such credit.

Prior approval of the Additional Commissioner is required for refund in excess of Rs. 1 Lakh

Prior approval of the Commissioner is required for refund inexcess of Rs. 10 Lakhs

After meeting any existing tax liability of the deductor, the balance amount may be refunded to the deductor.

Poltu Ghosh (Job) (1865 Points)
Replied 27 April 2017

you can adjust the same against future TDS liability

srinivas (Finance Manager) (239 Points)
Replied 28 April 2017

Hi,ou

You can adjuest excess paid amount in same quarter and same f.y under same section. Pls verify if there is any pending amount in same section for same quater and f.y. If not follow Mr.Rahul shah instructions.

Regards

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