Re: TDS Credit

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This query is : Resolved

DHIRAJ SATNALIKA (Querist)

08 May 2008 CASE I : Mr. X received a certain income fom Mr. Y.
The payment was made without deducting TDS.
In the next Assessment year Mr. Y realised the TDS amount from Mr. X, on the ground that by mistake he has not deducted TDS at the time of payment. The tax was deposited by Mr. Y on the recovery of TDS amount from Mr. X on the same date.
How Mr. X will take credit of this TDS amount in the year of deduction?
Also, what will be the treatment in the hands of Mr. Y?
Will the benefit of this can be taken by any of the party?
CASE II : What will be the solution in the above case if the TDS is not recovered from Mr. X but paid by Mr. Y himself?

CA Hemant T Dewani

CA Hemant T Dewani (Expert)

08 May 2008 firstly if you are not deducting tax in the perticular finacial year then it is disallowed in that year if you are deducted tax in next year then that part of the exp.are allowed in that year you are not issuing tds certifcate to mr.X when you will deposted tds amount you will give tds certificate he will claim in that year & you will collect tds amount from X otherwise this is your drawing debitted to capital a/c

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