Deduction of tax at source--Payment in excess of the amount actually deducted or deductible from salaries and other types of payments under section 192 to 194D of the Income-tax Act--Refund/adjustment of

Tax deduction at source excess payment adjustment: excess amounts must be set off against direct tax liabilities before refund.

Excess payment from TDS is the difference between the actual payment by the deductor and the tax deducted or that deductible, whichever is more. That excess must be adjusted against existing liabilities under the Direct Tax Acts and, after meeting such liabilities, the balance refunded. Branch offices filing TDS returns are separate units; the ITO who receives the branch's statement is responsible for refund. Refund vouchers must be prepared debiting the appropriate major/minor heads, and particulars of adjustment/refund recorded in the quarterly TDS statement or annual return under the ITO's endorsement.