Excess TDS payment in 2022

If your company accidentally paid significantly more TDS than required under Section 194C in February 2022, don't worry. You have options to rectify this. The excess TDS can be adjusted against future TDS payments in subsequent months or quarters. Alternatively, you can claim a refund of the overpaid amount when filing your Income Tax Return (ITR) at the end of the financial year. It's important to note that excess TDS can generally be used against liabilities under different sections and across financial years, contrary to some initial advice. If needed, challan corrections can also be made via the TRACES portal.