Last f.y. tds deducted in current f.y.

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

15 May 2014 Hi,

How can i adjust TDS charged in current year for transactions of previous year

Brief History:

A business associate of a client forgot to charge tds on a transaction during the financial year and charged the said tds amount in the next financial year as per 26AS

Due to oversight on the client's part they forgot to raise an entry of tds charged during the previous financial year and the said TDS amount does not reflect in the Associated Party's Ledger Account as opening balance which is leading to a difference in Final Accounts

How can i rectify this error since i cant make changes to previous year's balance sheet

also to further clarify the client didn't use the said tds amount while claiming tax credit during previous year

Rupesh Jain

Rupesh Jain (Expert)
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15 May 2014 you have to deposit the TDS after select the year ( for example FY 2013-14 A Y 2014-15) and if you are already file the TDS return then you have to revise the TDS rEturn .
after Filing the return TDS amount will reflect in 26AS of client . and he can claim the TDS amount.

Querist : Anonymous

Querist : Anonymous (Querist)

15 May 2014 no i'm asking this from purely accounting point of view there is no changes in TDS return only difference in Books of accounts due to error of omission which is reflected in current years balance sheet i'm looking for an accounting entry to just adjust the difference in opening balance without changing previous year's balance sheet

Rupesh Jain

Rupesh Jain (Expert)
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24 May 2014 you can make entry

party a/c
to TDs payable a/c

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