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Circular on excess TDS

08 January 2010

I have confusion that if in one quarter excess TDS is deposited then whether in next quarter the excess deposited TDS can be adjusted?

If yes, has any circular exists for the same?

Regards

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7 Replies

CA.Tarun Maheshwari (CA, DISA) (7150 Points)
Replied 08 January 2010

I am not aware of exact circular number, but yes, you can adjust the same if it is within the same section. But after adjustment, you will need to revise your return for the quarter in which such excess tds was deposited.

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Amir (Learner) (4016 Points)
Replied 08 January 2010

Dear Hinna,

First of all TDS is deposited on monthly basis & not on quarterly basis..It is the return which is to be filed on quarterly basis..

Further, I don't think there is any such Circular...Adjustment of Excess/Short deduction is allowed in case of TDS on Salary only..

Suman Khurana (ACS) (209 Points)
Replied 08 January 2010

Hi Tarun

Need of revising the return will arise only if the company has already filed Return. But if the Company's return is pending for filing for two quarters (one in which excess deposited and one is which excess adjusted) then there is no nedd to file revised return.

M i right?

CA.Tarun Maheshwari (CA, DISA) (7150 Points)
Replied 08 January 2010

Yeah Agree. And one more thing. What I have suggested you is totally based on practical experience. What we do in case of excess deposit is that we pass necessary adjustment entries in books of accounts and accordingly claim it in next quarter.

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narasimha murty (Managing partner) (54 Points)
Replied 08 January 2010

Dear Mr. CA Tarun Maheswari and Mr. Hinna Garg

I ve entered here just to ask the same question.

Thanks to you both. You have solved my problem.

Wish I could get that circular.

CA. T Narasimha Murty

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Amir (Learner) (4016 Points)
Replied 09 January 2010

Dear Friends,

First of all, I couldn't find any such circular...

Secondly, Mr. Tarun, I agree that in practical life u must be doing things of that sort but my question is whether it is teneble as per Law...

Remember one more thing, CIRCULARS ARE NOT BINDING ON CIT(A), ITAT, HC & SC, if this case goes into litigation then I am sure that the circular which u guys are talking about will be quashed sine Law has not provided any flexibility of such kind..