Income and expenses transactions show years and account entry passed procedure

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Kollipara Sundaraiah (Querist)
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11 August 2026 sir,
one income tax payer running a private hospital year income estimated rs:3 crores but some patients treatment in hospital after amount received from health care trust
example patients treatment bill amount rs:3 lacs for some expenses paid food and travelling etc value rs:50,000/- for month june-25 treatment amount form healthcare trust recieved rs: 3 lacs for the month of august-2026 tds deducted amount received date.Question:hospital above transactions show procedure in account books treatment and accounting entry passed procedure for income tax purposes and expenses paid and income transactions show procedure year 25-26 or 26-27 correct procedure

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)
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11 August 2026 Under the accrual basis of accounting, treatment income and related expenses occurring in June 2025 must be accounted for in FY 2025-26, while the TDS deducted and received in August 2026 is reconciled and claimed in the assessment year matching the income's taxability.

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