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Income recognition and claim for refund on tds deducted

SUMAN KUMAR MISHRA (Student CA IPC / IPCC) (32 Points)

15 September 2015

Respected sir,

I am in a Dilema that when to Recognise the Income and Claim the refund on TDS Deducted by Party on Advance given.(e.g.TDS Deducted on Rs.500000 @ 2% for F.Y.2013-14,but actually such imcome related to F.Y.2014-15) and TDS is also reflected in 26AS for F.Y.2103-14

Pls Advice me the correct Treatment

Thanks & Regards

Suman Mishra

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6 Replies

S. Shiroor (Others) (1207 Points)
Replied 15 September 2015

If your accounting method is cash basis and ur client's is mercantile basis - such a thing happens.

File rectification request for AY 2014-15[FY 2013-14] C/F the TDS to AY 2015-16 [fy 2014-15]

I hope this helps

Rashi Bajaj (CA) (752 Points)
Replied 15 September 2015

TDS has to be claimed in the year of including the corresponding income to tax purposes. Therefore you will have to claim TDS in FY 2014-15.

In return of AY 2014-15, under tds schedule, input the details of tds as deducted by the party, but DO NOT CLAIM IT.

In Ay 2015-16, you again have to input the same details, and now claim the tds.

Hope this helps.

jaya krishna (Chartered Accountant) (262 Points)
Replied 15 September 2015

At that time If you not adjust that Tds amount now you can eligible to adjust adjust tds amount. Now You can enter details of challan and if there is any UN adjusted amount available you can eligible for this year..

Miss Rinkal (Student) (1304 Points)
Replied 15 September 2015

Yes I agree with Rashi Bajaj

S. Shiroor (Others) (1207 Points)
Replied 15 September 2015

@ Bajaj In Ay 2015-16 return in TDS you have to fill c/f column -->AY 2014-15 and claim it [ In case AY 2014-15 is not assesed].

I hope i am correct

Miss Rinkal (Student) (1304 Points)
Replied 16 September 2015

Yes that is 2014 because the form takes it in that manner that if the Tds belongs to fy 2014-15 then you need to enter 2014 and if it belongs to 2013-14 then you need to enter 2013 Not assessed meaning you have filed your return ( Correct me if I m wrong)