Excess TDS Deposited in one section can be adjust with another Section

Excess TDS adjustment

For providing the relief to the taxpayer, the Income tax department has relaxed norms of e filing of TDS. Allowing adjustment of excess tds deposited in one section with other section. Further income tax department has also allowed excess tds deposited in one assessment year with another year. This amendment was incorporated in 2012-13

Example: The challan used for payment of TDS relevant to Section 192 of the Act can also be used for reporting tax deposited under Section 194 of the Act also. 

Prior to Financial Year 2012-13

Setoff of challan in TDS was based on Section in the challan details.

After Financial year 2012-13

Section quoted in challan, at the time of depositing TAX deducted/ collected is irrelevant for the purpose of setoff in TDS Statement.

IMPORTANT THING TO KNOW

If you have filed the TDS Returns with the correct section then your tds returns will accepted and no need to inform the department. Now days the TDS Challan is matched and not the section mentioned in the TDS Challan and TDS Returns. 

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