Adjustment of Excess TDS deducted

[madhavvan n]

can excess tds deducted in 1st quarter be adjusted against the liability of tds in second quarter how can it be done in etds return since the challan no and date of payment to be quoted will be before the date of tds deduction viewers pls enlighten

[Rama Krishana]

I think the problem of payment of excess TDS is an issue which must be address by the CBDT as soon as possible. In the meantime, is advisable that you may take up the matter with ITO and adjust the excess TDS with next liability after taking his approval in writing.

[shruti mair]

I faced the same problem recently. So I approached the ITO. I was advised that I should take the benefit and then submit a letter with the department mentioning the details in it.

[CA.Mohammed Lakkadsha]

In my opinion you can mention challan date as it is possible to mention challan of previous date though you have to mention deduction date within quater.

AI Summary

Excess TDS adjustment requires ITO approval and documentary filing to set off earlier deductions against later liabilities. Excess TDS deducted in an earlier quarter may be adjusted against a later quarter's liability only with administrative clearance: taxpayers should approach the Income Tax Officer (ITO) for written approval, submit a departmental letter detailing the intended adjustment and challan particulars, and can, as a practical measure, quote an earlier challan date in the e-TDS return while ensuring the deduction date reported is within the relevant quarter; formal CBDT guidance is desirable.