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tds

shubha (articled student) (67 Points)

19 June 2008

hi,

i wanted to know if suppose a company has paid excess tds in a month.. say for april paid in may.. can they set it off for the next month.. i.e june.. and pay only the balance? pls clarify...

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9 Replies

Shekar (CA & LCS ) (1109 Points)
Replied 19 June 2008

Hi Shubha..

U mean to say while making payment to any creditor, u have deducted TDS in excess and have remitted the same to the department...if that is the case u can set it off with next payment to that party by deducting less TDS to the extent of Excess deduction made last time...

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Surya Chandra Sekhar (SAP FICO Consultant) (27 Points)
Replied 19 June 2008

Hi,

The excess TDS payment can be adjusted against the month which falls in the same quarter or against any quarter. But do sett of against the month in the same quarter. It will make ease your TDS return

Rishubh Mathur (Analyst -Taxation) (442 Points)
Replied 19 June 2008

I believe you have deducted excess TDS while making payment to any vendor/ creditor. If such is the case, you can easily set it off against any future payment to such party/ person, preferably within the same quarter.

Even in case there is no further transaction with such party/ person, you may show actual amount of TDS & gross amount payable to such party/ person. TDS deducted in excess can be claimed by such party/ person while filing his/ her/ its Income-tax return for the relevant FY.

But if TDS has been deposited in excess of deduction, then you can show such excess deduction as unadjusted tax deposited in the TDS return for the quarter, and in the next quarter, you may deposit such amount as TDS with bank, as reduced by excess TDS deposited in earlier place. For eg. you had deposited Rs.25,000/-, instead of Rs.15,000/-. In current month, you had deducted Rs.20,000/- (say). Then, you may deposit challan of Rs.10,000/- (ie. Rs.20000 - Rs 10000), for the current month.

Amit kedia (article) (200 Points)
Replied 19 June 2008

u can deduct less amt in next payment to set off the balances

MUKESH GOYAL (SERVICE) (45 Points)
Replied 20 June 2008

YES, YOU CAN SET OFF TILL THE EXHAUST FULL TDS AND NO PERIOD IS BINDING.

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Savan Somani (Corporate Manager) (478 Points)
Replied 07 April 2009

paid excess tds in a feb 09 for rent - can it be set it off in april 09- as forgot to setoff in march 09

CA RAMESH KUMAR AHUJA (CA, DISA, LLB) (5452 Points)
Replied 08 April 2009

Originally posted by :shubha
"	hi, i wanted to know if suppose a company has paid excess tds in a month.. say for april paid in may.. can they set it off for the next month.. i.e june.. and pay only the balance? pls clarify...	"

Yes, it can be adjusted in the next month

Divya Karthik (S) (459 Points)
Replied 08 April 2009

hi,Can any1 tell me wat is the tds rate applicable for rent for the F.Y 2009-10.

Also,I would like to have the tds rates for various headings for A.y.2009-10

Sandeep Keswani (Tax Consultant) (1064 Points)
Replied 08 April 2009

If u have deducted more TDS of any party and deposited with the Govt., u can set it off in the next month by deducting less TDS for the same party. In other case, if u have deducted normal TDS for all parties BUT paid more to the Govt. (which is a rare case), u can adjust the excess TDS paid in the next month against TDS of any other parties.