Can income accrued be declared, using Mercantile accounting, without invoice?

The service receiver has accounted it in the FY 2023-24, under mercantile accounting.

Without any evidence how can you prove that the services were provided in FY 2022-23?

Originally posted by : Dhirajlal Rambhia
	The service receiver has accounted it in the FY 2023-24, under mercantile accounting. Without any evidence how can you prove that the services were provided in FY 2022-23?

 Thanks. Let's say if it is mentioned in the July 2023 invoice line item - that the payment is for the "services rendered from Jan 2023-Apr 2023" Then would it be possible to put it in the FY22-23? I've been researching this a bit and found   Proportionate completion method in AS-9 and  M/s. Optum Health & Technology (India) Pvt. Ltd. Vs ITO (ITAT Bangalore)  ITA No.1068/Bang/2016 which essentially says bills are not needed for accrual of income.   The only problem then would be the TDS mismatch... Right?   

One last thing, You said four years ago that, this upwork export income cannot be considered foreign source of income(https://www.caclubindia.com/forum/details.asp?mod_id=526560). Therefore, we can file ITR4 right?  Because itr4 guidelines says ITR4 cannot  be filed by "(e) has income from any source outside India". 

1. Confirmation of services received (from receiver) in quarter Jan to March 2023, is must.

2. Though it is debatable issue, still am of the view that you can file ITR 4.

Originally posted by : sabyasachi mukherjee
	Yes income accrued can be declared.

@ sabyasachi What about the TDS mismatches in Forms 26A and 16A? TDS will only be deducted next year, but next year total income shown as per TDS would be much higher than actual declared income, which may unnecessary practical issues.

@ Dhirajlal Thanks for your time.  Even if we use ITR3, there issues shown by the original poster (https://www.caclubindia.com/forum/details.asp?mod_id=526560) is still not resolvable - Schedule FA and FSI seems to be unfillable...

FSI - what would even be the TIN?

FA - Should we fill item G(even though it is business income)?

If you have any update regarding this, kindly update here or the original post.

PS: I don't know the intricacies of the rules of this forum. If this should be a different post, kindly let me know.

When these schedules are applicable then no need fill anything there.

If you have any foreign assets like bank account, investment etc., then only it would be applicable.

@ Dhirajlal  Forgive me if I'm mistaken, but I thought the only purpose of disallowing ITR4 for "foreign sources of income" is for these schedules to be filled. Right? As the original poster says("After selecting yes of Part B - TTI 14th I have no choice but to fill the details in schedule FA but question is where and how ?" https://www.caclubindia.com/forum/details.asp?mod_id=526560) If you say "Yes" to foreign sources of income, then it won't let you  submit, unless you fill these schedules. But there's nothing to fill there, I think.  Do you think Upwork virtual account qualifies as a foreign bank account? Money from service receiver goes to Upwork escrow,  then to freelancer's upwork virtual account and then paid out regularly(or on demand) to the freelancer. There might be some money in there remaining at the end of FY, but that account is a virtual account as far as I can see.  The actual bank account would have all the money pooled from different freelancers. TDS(in rupees) is also paid by Upwork upon payment by the service receiver(i.e., upon amount attributed in virtual account - not when money goes to freelancer's bank). I believe the money remaining there(if any) would be "sundry debtors"(for 44ADA) or Accounts receivable and not a foreign asset, even if it is in a different currency. So the question simply remains: What to fill in schedule FSI/FA, when you say "Yes" to foreign sources of income?

As said earlier, it is debatable issue. Those in Favour of labelling it as foreign income may reply it. I am not.

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