Tax Deducted at Source:Excess of TDS of P.Y can be adjusted for the C.Y

Last Updated On: Oct. 4, 2020, 11:40 p.m.


Most of the time people face this kind of complication, complications that occur when an excess of TDS is paid by mistake. Users find this as a complicated situation but there is nothing to worry about in this situation. This article will help you ways to resolve or overcome this situation.

Different ways to deal with when an excess of TDS is paid:

1.As per Deductor’s Convenience, CPC has introduced processing logic in the system that can accept a single challan for the different assessment years.

In case if the tax has been deposited more than the required tax deducted at source for a particular Assessment Year, the excess amount of tax can be claimed in the following quarters of the relevant year.

If there is any balance, it can be carried forward to the next year for a claim in the TDS statement

Example: If excess payment of Tax has been made in Quarter 1 of the financial year 2020-21, the same can be used for Quarter 2,3 & 4 of F.Y. 2020-21 as well as for Q1 to Q4 of F.Y.2021-22. The excess amount of tax paid in Q1 of F.Y.2013-14 can also be used for payment of tax default of Q1 to Q4 of F.Y.2019-20.

2. If after following the process of adjusting challan in the next financial year, still, the partial amount is remaining in this challan, then you can apply for the refund of excess TDS deducted or paid. Or some people who do not want to adjust the amount for next year can straight away apply for a refund.



Step 1: Log in to the TRACES website and Go to “Request for Refund” under “Statement Payment Tab“

Step 2: Go to Refund Checklist and click on “Proceed “

Step 3: Please select Section code:

  • Refund Request for Challan u/s 195
  • Refund Request for Challan other than sec. 195

Select Appropriate reason for raising the Refund Request, Click on “Add Challan” after selecting the appropriate reason for raising the Refund Request.

Step 4: Give challan details & if challan pertains to the appeal order than enter the appeal order number for which the deductor wants to claim a refund.

Step 5: Give the Bank details to submit a refund request.

Step 6: Verification page: Click on “Proceed” to continue the TDS refund request.

Step 7: Confirmation Page: Click on “Submit Refund Request” to continue the TDS refund request.

Step 8: Select “Digital Signature” and proceed.

Step 9: 26B has to be submitted within 14 days to the Assessing Officer.

Step 10: Request will be available under “Track refund Request”.

Step 11: Under “Track Refund Request” select search “Option “1 or Option 2” to view Refund Status with remarks.


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