TDS rate change consequences

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Sr. Accountant
107 Points Posted on 21 June 2020
Sir,

As per Govt. notification TDS rate has been reduced by 25 percent, from 14th MAY.

But TDS deducted @ 10 percent instead of 7.5 percent under 194J and deposited in government account erroneously.

example. invoice dated 23rd May of Rs. 10000/- . Tds deducted Rs. 1000 in liew of 750. and deposited on 3rd June.

now what can be done, is there any solution available?

please guide...
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On 21 June 2020 at 11:35 Report
Replies (4)
Quick Summary
A recent government notification reduced TDS rates by 25% from May 14th. However, TDS was mistakenly deducted at 10% instead of the new 7.5% rate under section 194J for an invoice dated May 23rd. The excess 2.5% was deposited. The advice given is to adjust this over-deduction against future payments by correctly mapping the challan in the TDS return.

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Chartered Accountant
4524 Points Posted on 21 June 2020
Adjust 2.5% in other payment.
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On 21 June 2020 at 12:09
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4215 Points Posted on 21 June 2020
You may deduct the defence in subsequent payment
1 Reply
On 21 June 2020 at 13:18
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Chartered Accountant
821 Points Posted on 21 June 2020
The extra deduction can be adjusted against any other payments

You just need to map the challan correctly in the TDS return
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On 21 June 2020 at 13:27
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Sr. Accountant
107 Points Posted on 21 June 2020
Thanks for the update....
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On 21 June 2020 at 19:13

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