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Can we claim tds of ay 2014-15 in ay 2015-16

(Guest)

Hi,

TDs was deposited by a party (deductor) u/s 194J on 02/12/2014, whereas income tax return for AY 2014-15 was filed by assessee on 14/08/2014 for AY 2014-15.

The TDS of Rs 12000/- was not claimed as it did not appear in 26AS at the time of filing return.

The return was delayed because the assessee waited for the party to deposit the tax. As we didn't know the amount, we could not even carry it forward.

The professional receipts Rs 120000/- on which the said tax is deducted are already taxed in the AY 2014-15. Can we now claim the TDs in AY 2015-16?

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13 Replies

Ruchi (CA) (1410 Points)
Replied 05 November 2015

No.... since the income pertains to AY 14-15 and is also shown in the return of income... you cannot claim it in AY 15-16.

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 05 November 2015

on the basis date of issue of form 16A, you can claim as earlier year TDS

CA HAYEDAR SHAIKH (Practice ) (622 Points)
Replied 05 November 2015

Dear Mam,

Yes,

You can take the credit of TDS of AY 2014-15 in AY 2015-16 since it is your money and claim the refund.

CA Shree Jain (Chartered Accountant) (1572 Points)
Replied 05 November 2015

No you cant take credit on earlier year.

S. Shiroor (Others) (1207 Points)
Replied 05 November 2015

You can take unclaimed TDS in next year if you have filed the return in which it is appearing.

You should take TDS amt as Income as well as Tax credit.

Is the assesment over u/s 143(1) .

You can file revised return for AY 2014-15 upto March 2016 even though asses Info u/s 143(1) has come. You have to revise the return bcoz the income gets increased by 12000. and tax credit gets increased by 12000.

If you have received 108000 only and taken 120000 as income then you can try for rectification after writing to greivance.

S. Shiroor (Others) (1207 Points)
Replied 05 November 2015

Revise return you cannot file since original return was not filed b4 due date..Only Rectification is allowed.

Karthik.V.Kulkarni (Chartered Accountant) (594 Points)
Replied 05 November 2015

There is absolutely no problem un claiming the unclaimed tds. As you had already given the receipts for taxation you can claim. There need not be any inconvenience caused. Without changing anything normally file returns and claim the amount.

Ashok J (CA Final) (880 Points)
Replied 05 November 2015

Ask deductor to file tds return and revise ur return...dept strictly goes by form 26 as....u can claim in another ay....i dono if there is any other spl procedure or benefit available.....

pankaj (Practice) (89 Points)
Replied 05 November 2015

U cn claim the tds

Ashok J (CA Final) (880 Points)
Replied 05 November 2015

* u CANT claim in another ay....

CA Rajesh Mavoori (Audit and taxation) (31 Points)
Replied 06 November 2015

Please Refer Rule 37BA of Sec 199

One of the biggest problems faced by professionals following cash basis of accounting was Tax Deducted at Source by the clients following mercantile or accrual basis of accounting against unpaid bills at the close of the financial year.

Under the accrual basis, the clients would deduct and pay the TDS against the Assessment Year relevant to the financial year. However, under cash basis, the professional firm would recognise unpaid bills as income only whenthey are realized.

For example:
Professional firm (SKR& Co.) raises bills of 2 lacs on the client (HK) Ltd as on 25 th March 2014. As on 31 st March, 2014, the client makes a provision for TDS Rs. 20000/- and includes it in its TDS return of quarter 4 of FY2013-14 (AY 2014-15). The client pays the bill in FY 2014-15.

This often creates confusion among professionals as to which assessment year they should claim TDS credit? and how?

Rule 37BA of Income Tax Rules which was inserted w.e.f. 01-11-2009 provides for apportionment of TDS in such situations. As per rule 37BA tds credit should match with the income assessable.

Sub Rule (3) of Rule 37BA is reproduced as under:

(3) (i) Credit for tax deducted at source and paid to the CentralGovernment, shall be given for the assessment year for which such income isassessable.
(ii) Where tax has been deducted at sourceand paid to the Central Government and the income is assessable over a numberof years, credit for tax deducted at source shall be allowed across those yearsin the same proportion in which the income is assessable to tax.

Following rule 37BA(3) as above, the professional firm should file its income tax return and claim TDS as under:

FY:2013-14, AY 2014-15

In TDS Schedule ITR-4, leave column 5 blank, incolumn 6 write 20000/- and in column 7 write 0.00.

FY:2014-15, AY 2015-16

In TDS Schedule ITR-4, in column 5 write 2014.In column 6 write 20000/- and in column 7 write 20000/-

S. Shiroor (Others) (1207 Points)
Replied 06 November 2015

Mr Rajesh whatever you mentioned has happened to me also in AY 2008 to AY 2010.

you are mentioning Circular no 28/2009 which applicable from April 1 2009. and not november.

I have following points to make

1) There are instances when TDS credit appears after assesment is over [my case AY 2014-15 - amt small 3000]

2) From AY 2008 to AY 2013-14 has no columns for B/f - this has been introduced in AY 2014-15 only

3) it is likely that TDS of previous years may be forgotten to be carried forward in physical filing and/or online. [my case TDS of AY 2008 C/f and taken in AY 2009 but some TDS appearing in AY 2008 belonging to AY 2010 - remains to be unclaimed. bcoz we file return after 1 year gap]

I had asked my IT ward office to transfer all the unclaimed TDS form AY2008 and AY 2009 to AY 2016. He said he cannot transfer like that.

Now it appears that there is a B/F mechanism. But the CPC must be able to see unclaimed TDS in their system. I was told that the data from AY 2007 is available in the Computer bcoz i accidently got refund for my wife for AY 2007.