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.
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.
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.
CAclubindia
