professional income for which year, vis avis TDS

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pankaj mittal (Querist)

10 December 2007 A provision in Ay 2007-08 made for Rs 1 Lakh as audit fees. and TDS Dededuted. The CA Firm Maintains its books on cash basis. How They Have To Account For In Ay 2007-08 And AY 2008-09. Since The TDS Cerificate Shows the Ay 2007-08 but income is received on Ay 2008-09. Kindly explain in detail sectionwise.

Shyam Lal Naik

Shyam Lal Naik (Expert)

10 December 2007 The credit for tds can be claimed by the ca firm during the assessment year 2008-09.

Claim of tds can not preceed offer of income for taxation.

The IT return form is equipped to take care of such a situation.

pankaj mittal

pankaj mittal (Querist)

14 December 2007 My view is that As Per Section 198 of ITax Act TDS is income received therefore the tds certificate for Ay 2007-08 only TDS Amout is to be taken as income For Ay 2007-08. And balance Amt as income of Ay 2008-09. Kindly reply

CA. O.P. Agarwalla

CA. O.P. Agarwalla (Expert)

17 December 2007 Mr. Pankaj Mittal

I beg to disagree with you. If I am remebering correctly, same type of view were expresed by some guest in one another query.
I would like submit that it is right that section 198 ius saying that such TDS will be the deemed income of the deductee (assessee), but in this section it is no where said that, for which year the said TDs will be treated as deemed income.
Further, section 199 is very clear in saying that ".... credit shall be given to him for the amount so deducted on the production of......... for the assessment year for which such income is assessable".
If we segragate the income (as said by you) in two part (amount of TDS in one year- balance amount in another year), how can one claim the credit of TDS?

You may kindly refer to th judgement of Mumbai ITAT Bench in the case " Smt. Varsha G Salunke Vs DCIT" (2006)98 ITD 147 (Mum)

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