Carry forward of tds credit

This query is : Resolved

Rajendra (Querist)
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22 July 2013 I have a client maintaining the books on cash basis. He has billed a substantial amount in March'13 which is realised in may-13 but the relevant TDS is made in March.

Since he will declare such income in FY 13-14, he cannot claim the credit of such tax appearing in his 26AS for FY 12-13 and in the IT returns, he has to declare that TDS is deducted in FY 12-13 but credit claimed is Nil. Now,

- Will such pending claim/carry fwd credit be appeared in Form 26AS?
- Will there be any difficulty in claiming such credit in FY 13-14 (since, 143(1) is automated and it will be computed based on the credit showing in form 26AS)
- Is there any other method to resolve this issue?

Please respond...

CA Ayush Agarwal

CA Ayush Agarwal (Expert)
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22 July 2013 no, he has to claim credit in the year in which TDS deducted and credited and apart income to be shown in the same year only.

thats why most people follow merchantile basis only.

Rajendra

Rajendra (Querist)
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22 July 2013 Thanks Mr. Ayush,

However, there are also considerable no. of assessees who file the return on cash basis including CA professionals. if the present automated system does not allow the carry fwd of TDS, the whole purpose of Rule 37BA would be defeated.

there must be a way out, there is an option in ITR as well to claim the less credit than deducted. Or is it a slack which IT dept has not considered while automating.

look fwd for your responses

CA Ayush Agarwal

CA Ayush Agarwal (Expert)
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23 July 2013
The AO shall give credit of the TDS in the f.Y. 2013-14 which is not availed in the f.Y. 2012-13 provided the same is mentioned in the TDS column of ITR that the credit of only a part of the TDS has been availed in the A.Y. 2012-13.

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