a company was liable to pay 30000 TDS Under section 194C in Feb2022 but payment was made for 300000.
what can be done??
can we claim refund of the balance amount ???
or can it be adjusted in the next month?
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Excess TDS payment in 2022
Replies (18)
You can adjust the challan with any other TDS payments in future.
Or you can claim refund excess paid TDS after deducting tax payable while filling ITR at the end of the financial year .
In case tax has been deposited more than the required tax deducted at source for a particular Assessment Year, the excess amount of tax can be claimed in the following quarters of the relevant year. The balance amount if any, can be carried forward to the next year for claim in the TDS statemenT
This type of common mistakes happen in practice.
While filing Q4 Tds returns apply for Tds refund.
It can be adjusted in the February & March months tds of 194C also.
If it is still excess then balance can be refunded.
But don't carry forward to next financial year.Since Assessment Year will be changed & the current challan can't be used for next AY.
Try to get the refund if it's not completely adjusted for coming two months
While filing Q4 Tds returns apply for Tds refund.
It can be adjusted in the February & March months tds of 194C also.
If it is still excess then balance can be refunded.
But don't carry forward to next financial year.Since Assessment Year will be changed & the current challan can't be used for next AY.
Try to get the refund if it's not completely adjusted for coming two months
Try to adjust maximum 2 months after claim for refund excess payment amount
| Originally posted by : Eswar Reddy S | ||
 |
Since Assessment Year will be changed & the current challan can't be used for next AY. |  |
Sorry, but that's absolutely, completely incorrect.
Any excess TDS can be used for all subsequent quarters of the year, as well as all 4 quarters of the next year. ie : excess from Q1 of 2021022 can by used for Q2, Q3 and Q4 of 202122 as well as Q1, Q2, Q3, Q4 of 202223.
It's been this way for 10 years I think.
And in addition, there is no connection between the section under which TDS is paid and the sections under which TDS is filed in the return.
So any excess under 194C today, can be used for any and all other TDS sections in the future.
This has been the case for at least 10 years too, I think.
Do you mean Section 194J can be used for 194C ?
| Originally posted by : Eswar Reddy S | ||
|
Do you mean Section 194J can be used for 194C ? | |
Yes.
And it's not me saying it. The tax department has said this since 10 years. The section under which tds was deposited is irrelevant. And you can use any excess tds balance (accidental or deliberate) for future returns under any section.
Generally we take proper care while selecting the section .
Even if it is wrong then also no problem , right ?
Even if it is wrong then also no problem , right ?
https://www.caclubindia.com/forum/tds-payments-vs-deduction-194c-587290.asp?offset=1
https://www.caclubindia.com/forum/tds-payment-under-different-section-589223.asp?offset=1
👍🏻👍🏻
You can change section and assessment year both through challan correction option on traces portal.
Challan correction can be done but he is saying without correction also there is no issue.
Yes he can go without correction also.
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