T.D.S.

This query is : Resolved

Prajakta Prabhune (Querist)
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08 July 2009 In case of excess payment of T.D.S. Income tax says that " excess amount is first adjusted against the existing tax liability of the deductor under any Direct Tax Acts and after meeting such liability the balance amount, if any is refundable to the assessee."
My client has deposited excess T.D.S. under 94C and can i adjust now against 94C and 94J against my payables?
Will it be allowed? And above quoted income tax lines suggests the same? or else?

Ratan Sharma

Ratan Sharma (Expert)
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08 July 2009 No Prajakta,
In my opinion if you have paid the excess TDS u/s. 94C then you can only adjust it tax deductible u/s. 94C of any other person. In that case you have to just change the TDS return if you have already filed it.
But you can not adjust it with section 94J.
The lines quoted by you belongs to one of the circular issued by CBDT which prescribe the procedure for AO in case where the assessee claims for refund of excess deduction of tax. Here you are not applying for the refund of excess TDS with ITO,instead you wish to setoff the excess TDS deducted in one section with other section.
In my view it will not be allowable.