Tds

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shrikant (Querist)
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22 October 2013 An assessee Mr Vijay is following mercantile system for interest income which is received on quarterly basis. During FY 12.13 (AY13.14)interest for the last qtr (Jan 13 to Mar 13) was received in April 2013. However the person with whom the deposit is kept has deducted the TDS of the said qtr in April 13 and has given credit of TDS for AY 2014.15 as he has followed the cash system of accounting. Mr. Vijay has to include the interest of said qtr for AY 12.13 but the TDS credit is not available. He will get credit of the TDS for AY 14.15 but the income relating to the said TDS will not be included in the total income of AY 14.15. What are possible solutions?

Nikhil Kaushik

Nikhil Kaushik (Expert)
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23 October 2013 Dear Shrikant,

You may refer to Rule 37BA(3)(i):

(3) (i) Credit for tax deducted at source and paid to the Central Government, shall be given for the assessment year for which such income is assessable.

This rule should cover your case.

In your tax return, give reference to the TAN No and name of the deductor. in the column "Financial Year in which TDS is deducted" mentioned 2013-14.

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