When can tds be claimed


This query is : Resolved 

09 August 2016 I am following Cash system of Accounting. I have received interest bearing Loan from one Private Limited Company (“Company”). The interest for the entire Financial Year 2015-16 is paid by me on 1st July, 2016 and shall show the same as expense as Interest paid in F Y 2016-17. I will show the same in my TDS Return for QTR 2 in F Y 2016-17. However, since the Lender is Company, it follows Mercantile System and shall show Interest income on accrual basis in F Y 2015-16, but for Company in their Form 26AS for F Y 2015-16, TDS will not be reflected, hence, the Company will not be able to claim the same in that year or if at all they claim, credit for the same will not be given by the Department. Kindly advise us on the following:

1) How the Company can get the credit for TDS in F Y 2015-16? As in Return of Income there is provision in TDS Sheet to show deduction made in earlier year, but claimed during the year, but not for deduction made in subsequent year and claimed during the year.
2) Can the Company claim the TDS in Return of Income and at the time of Assessment show the Form 26AS of F Y 2016-17 and also a letter issued by me explaining that the cash system followed by me and the period for which the interest relates?
3) Any other alternative which can reduce plight of the Lender for claiming TDS?

09 August 2016 The TDS can be claimed in the year in which it is made or any subsequent year. But it can NOT be claimed on preponement basis.


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