Excess TDS deposited can be used in the following quarters of the relevant year and the balance amount, if any, can be carried forward to the next year. Excess TDS deposited can also be used for payment of tax default of the preceding year.
Relevant extract from TDS-CPC Communication No. 27, dated 10.09.2014.
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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.
Example: If excess payment of tax has been made in Q1 of FY 2013-14, the same can be used for Quarter 2, 3 & 4 of FY 2013-14 as well as for Q1 to Q4 of FY 2014-15. The excess amount of tax paid in Q1 of FY 2013-14 can also be used for payment of tax default of Q1 to Q4 of FY 2012-13.