Tdsreceivable and cash system of accounting

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Querist : Anonymous

Querist : Anonymous (Querist)

31 July 2012 Hi we follow cash system of accounting.
we provided Rs.2 lacs services in the previous year. The other party depoisted the tds Rs.20,000 in the previous year whereas Rs. 1,80,0000 the payment was made to u in the current year.

I would like to know can i claim the TDS in current year as my income would be in the current year , even though my 26AS showing tds amount as related to previous year. Provide any case law or section if u have.

Futher do i have to show Rs.20000 details in the Previous year ITR TDS dedution details?
PLEASE REPLY ASAP.

Vishakha Kejriwal.

Vishakha Kejriwal. (Expert)
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01 August 2012 TDS claim would be in the year in which income pertaining to such TDS is assessable. Please refer to Income Tax Circular No. 5/2001 on this.

Thus for Rs. 20000 received in the previous year you could claim proportionate TDS deducted on such amount in the previous and the balance amount can be claimed in the current year.

You can also refer to the case of Pradeep Kumar Dhir, v. Asst. comm. of Income Tax (ITAT- Chandigarh).

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