I have received a consulting income from a CPSU for work performed in FY 2021-22, during April and June 2022.
Although my invoice was raised in April 2022, and paid also in two parts in April and June 2022, the Form 16A for Q4 FY 21-22 generated in June 2022 shows that amount is paid/credited as on 31.03.2022, and TDS is also deducted in FY 2021-22, the accounting is in order, and revision is not possible.
What is the correct position as per IT rules?
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ASSESSMENT YEAR of income accrued in FY 21-22, paid in FY 22-23
Replies (4)
If the invoice is raised in April then Tds should be covered in Q1 of 2022-23 FY and not in Q4 of2021-22 FY.
They might have considered in provisional basis and you may get the details from them
They might have considered in provisional basis and you may get the details from them
They have informed that since liability was created in anticipation of invoice, during FY 2021-22, credit and TDS are both shown Q4 21-22. Revision was requested to Q1, but they express inability.
You should carry forward the TDS from current year to next year and claim it in the next year as your invoice(income) would be offered there and also the corresponding tds would get claimed there.
As you mentioned, the income was accrued in the past year. That means it is taxable for the past year too, regardless of when you got paid.
Even if you didn't ultimately get paid, it doesn't change what happened in the past year.
The standard way of handling this is reporting your income, claiming the TDS and listing the unpaid fees (ie invoice value less the TDS) as a receivable in your balance sheet.
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