Tds claim

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Sanjana (Querist)
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31 October 2011 Income is offered to taxation in the F.Y. 2010-11 but the TDS on the same as deducted by the client is booked at the time of receipt of payment from the client i.e. in the F. Y. 2011-12. No 26AS credit or TDS Certificate for the TDS amount is received for the financial year 2010-11. Client says he has deducted TDS in the F. Y. 2011-12 and accordingly will issue the certificate for the F. Y. 2011-12. When should TDS be claimed? F. Y. 2010-11 or F. Y. 2011-12?

Thanks in advance...

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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31 October 2011 TDS in the given case can only be claimed in the FY 2011-12.

Now as you have said the income was offered for taxation in the Fy 2010-11. So you have paid the entire tax thereat. So now in the Fy 2011-12 you will only claim the TDS amount which is shown in 26AS.

Sanjana

Sanjana (Querist)
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31 October 2011 But as per the Income Tax Act, TDS is to be claimed in the year in which Income to that respect is offered to taxation?

Sanjana

Sanjana (Querist)
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31 October 2011 Also in which F. Y. should TDS be claimed if TDS Certificate for the F. Y. 2008-09 is received on 30th October, 2011?

- a) if TDS was booked in the F. Y. 2008-09 but was not claimed because no TDS Certificate nor 26AS was received

- b) if TDS was not booked in the F. Y. 2008-09

answer with reasons...

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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01 November 2011 Yes TDS to be claimed in the year in which income was offered for taxation. But that's normal case. Here your income was taxed in FY 10-11 but certificate received in respect of Fy 11-12. So will you get the same income taxed again. You also can not revise the return to claim TDS as TDS is being reflected in respect of Fy 11-12.

So there are only two options--

1) To revise your IT Return and exclude the income which was offered for taxation in the FY 10-11 and offer the said income for taxation and claim TDS thereon in Fy 11-12.

2) As said earlier simply claim TDS in FY 11-12 and no need to offer the said income for taxation as the same has been taxed earlier.

Sometimes we need to look beyond the textual concept to tackle this kind of situations. Since you have proper records there will not be any problem.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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01 November 2011 For claiming TDS Received date of certificate do not matter. What matter is the TDS is being reflected in 26AS or not.

You need to claim TDS in respect of Financial year in which the TDS return is filed by the deductor.

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