26 as regarding..

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SANDEEP KUMAR (Querist)
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22 April 2015 Sir,
My debtor has booked as an expense as provision on 31.3.2015 amounting to Rs 1,50,000/- therby deducted tds of Rs 15,000/- and filed the qrtly return of TDS. This is reflecting in MY TDS statment 26AS.

Now, My question is: Neither I have'nt raised any bill, nor I had any receipt during F.Y. 2014-15 (I may receive it on 2015-16).

Should I consider this as my Income just because it is reflecting in 26AS...?

By doing this, I am liable to pay S Tax of Rs 12.36% and 30% tax on profit so expanded.

Am I right..?

This is what my CA is doing. He simply book the income according to 26AS.

CA. SHIVA SHANKARA R. SHETTY

CA. SHIVA SHANKARA R. SHETTY (Expert)
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22 April 2015 Being a business man, your income will be accounted under accrual method of accounting. Therefore, you have pay the tax on your income, even though not received by cash.

Therefore, your CA is doing right.

SANDEEP KUMAR

SANDEEP KUMAR (Querist)
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22 April 2015 But.. Sir, I have'nt raised the bill too.! Moreover, why should i pay my s tax as 'Neither the bill recd nor the payment recd'..

My purpose is this..S Tax issue.

CA Amit K. Ganar

CA Amit K. Ganar (Expert)
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22 April 2015 Dear Sandeep

TDS can be claimed in the year in which it is deducted even though the sales is not booked. However it is must that the same has to be reflected in next FY.

You can justify your action to income tax department by putting fact in front of him if in case query has been raised.

We practising CAs faces same problem every year.

If you show the sale according to 26AS you will be in trouble for service tax and which is baseless.

Let the practical problem of Income tax be limited to Income tax only.

SANDEEP KUMAR

SANDEEP KUMAR (Querist)
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22 April 2015 Thanks Mr Amit K Ganar..

But, now my question is how 'showingn the sales according to 26AS will trouble me ? if I am paying S Tax.'

CA Amit K. Ganar

CA Amit K. Ganar (Expert)
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22 April 2015 Dear Mr Sandeep

I mean when TDS is deducted on provision and sales is not booked by you in that particular FY in which TDS deducted and reflected in your 26AS.

If you opt to show sales completely as per 26AS even on provision then there is no question of trouble at all.

SANDEEP KUMAR

SANDEEP KUMAR (Querist)
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23 April 2015 Thankz.. Mr Ganar, Now I am clear.

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