Advance received was wrongly considered as Income in ITR

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This discussion addresses an error where an advance received was mistakenly declared as income in an Income Tax Return (ITR) for FY 2018-19, leading to an incorrect TDS claim. The advice suggests revising the FY 2018-19 ITR to correct the income and TDS credit before the deadline. For FY 2019-20, the income should be reported accurately, with the corresponding TDS credit claimed. The impact of a refund already issued due to the initial error is also a point of concern.

Deepak Rawat

Deepak Rawat (Querist)
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19 September 2020 Dear Sir/Mam,
Please guide on Following Case.
In FY 2018-19, Mr. X wrongly considered advance received as Income in ITR. And claimed full amount of TDS in FY 2018-19.
Please guide what he can do in the ITR of FY 2019-20. Bills against advance has been raised in FY 2019-20. Should he deduct advance from Total turnover in FY 2019-20 ?
Please guide.

CA PARTH SHAH

CA PARTH SHAH (Expert)
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20 September 2020 Revise ITR of FY 18-19 by correcting the income and also reduce credit taken against it. You need to do it before 30th Sept 2020.

In FY 19-20, you can show the income properly and also claim the credit corresponding to that income in the ITR.

Deepak Rawat

Deepak Rawat (Querist)
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20 September 2020 Thank U Sir. But there was refund and the same has been issued by IT Department.
What will be it's effect ?

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