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tds inter section adjustment

MANISH PANCHAL (service) (174 Points)

03 October 2007

Can we make inter section adjustment in tds return i.e we have excess tds payment u/s 194j and short payment u/s 194c can we adjust excess of 194j against short fall of 194c ???

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2 Replies

Sambu Suresh (CA Job) (564 Points)
Replied 04 October 2007

PRACTICLE ISSUES: while u make payments through the challan, u will mention the sec no. and u are required to prepare the qtry return by challan wise . so I think it is not practicable to adjust against the excess in one section against the shortfall in another section. LEGAL ISSUES: Their is no section in the income tax act or in the rules is their to restrict u from adusting the excess or short fall in tds in one and other secitons. as long as u collect the correct tds and pay the correct to the govt, act doesn't impose any penalty or interest etc., if have the strong reasons which casused to pay the excess the tax than collected , u can adjust the same against other section. But it totally a personal skill how u establish before the assessing officer if any scrutiny comes. this is my personal opinion.

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Sambu Suresh (CA Job) (564 Points)
Replied 04 October 2007

and u should ensure that both the excess or short falls in one quarter. still u can adjust ,but its practically very difficult to have the track among the two quarter data