Tds on advance payment

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

29 March 2012 We have received advance in the month of March for the services to be invoiced in April.

Our client has deducted TDS on advance payment & will be issuing TDS certificate for the same, but we will invoice the services in next F/Y.

So, how can we claim TDS deducted in current F/Y against income of next F/Y

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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29 March 2012 Although income will arise in the next financial year, the TDS claim has to be made in the current year.

Querist : Anonymous

Querist : Anonymous (Querist)

29 March 2012 Please refer sec 199 and rules 37BA
"(3) (i) Credit for tax deducted at source and paid to the Central Government, shall be given for the assessment year for which such income is assessable.
(ii) Where tax has been deducted at source and paid to the Central Government and the income is assessable over a number of years, credit for tax deducted at source shall be allowed across those years in the same proportion in which the income is assessable to tax"

Pankaj Gandhi Jaiswal

Pankaj Gandhi Jaiswal (Expert)
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01 April 2012 As per TDS rule they have to deduct on advance payment and at the time of filing the ITR there is no any specific column for TDS on advance payment, so you have to claim this TDS in current year and showing the detail of this TDS at the time of assessment.