Analyst -Taxation
442 Points
Joined April 2008
I believe you have deducted excess TDS while making payment to any vendor/ creditor. If such is the case, you can easily set it off against any future payment to such party/ person, preferably within the same quarter.
Even in case there is no further transaction with such party/ person, you may show actual amount of TDS & gross amount payable to such party/ person. TDS deducted in excess can be claimed by such party/ person while filing his/ her/ its Income-tax return for the relevant FY.
But if TDS has been deposited in excess of deduction, then you can show such excess deduction as unadjusted tax deposited in the TDS return for the quarter, and in the next quarter, you may deposit such amount as TDS with bank, as reduced by excess TDS deposited in earlier place. For eg. you had deposited Rs.25,000/-, instead of Rs.15,000/-. In current month, you had deducted Rs.20,000/- (say). Then, you may deposit challan of Rs.10,000/- (ie. Rs.20000 - Rs 10000), for the current month.