Applicability of ids-2016 to ay 2014-15 and 2015-16

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Babu (Querist)

08 September 2016 A firm which did not file their IT returns for the AY 2014-15 and 2015-16 was advised to disclose their net income in IDS instead of filing belated returns. The firm had paid advance tax and sizable TDS credits amounting to approx 80% of the actual tax liability. It was opined that if the income is disclosed under IDS the firm may get immunity and escape regularization of belated return u/s 148 and subsequent scrutiny u/s 142. But it was also opined that the firm cannot get any credit for prepaid taxes, since the IDS is a standalone scheme and distinctly separate from any types of assessment, completed or otherwise.The question is whether any tax credit will be available in case the firm opts for IDS?Since the time is running out, I request your kind advice ....

ACA Anurag

ACA Anurag (Expert)

08 September 2016 Dear Babu,

yes u can claim tax credit for the income u are going to declare in IDS 2016 scheme as u should refer circular no 25/2016 where its clearly mentioned that "credit for tax deducted shall be allowed only in those cases
where the related income is declared under the Scheme and the credit
for the tax has not already been claimed in the return of income file
for any assessment year"

Hope your query is resolved

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Babu

Babu (Querist)

09 September 2016 Question No: 4 of 25/2016, gives enough room for TDS applicable to the income returned.Thanks for pointing my attention to the same.The confusion was made by some people who argued in both ways. In my case, both TDS and advance tax is present (TDS Rs.233850/- + Advance tax Rs.463500). And the balance tax payable comes to Rs. 200800. Forgive, me, If I would like to know whether advance tax paid in instalments would also qualify for credit, just as TDS.

Babu

Babu (Querist)

09 September 2016 You may also enlighten me regarding two other points. My client is a firm, in which partners take salary as authorised by deed. The income which I would like to disclose under IDS is the normal taxable net profit as per profit and loss account after making due adjustments . Secondly, is there any disallowances specific when opting for the IDS...Babu

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