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Can tds refund be claimed without showing the related income

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ar

article

21 Points Posted on 08 December 2015

One of our client is providing services on commission basis...the service recipient has deducted the TDS on due basis and our client has not recorded the same in his books since the reciept of income is uncertain...

I want to ask that can we claim refund of TDS without actually showing that commission income in his income tax return...

Please give opinion regarding the same with relevant provisions of the act...

Replies (4)

CA VISHAL GUPTA

none

143 Points Posted on 08 December 2015

Their is a high probablity of scrutiny if you do so !

Karthik.V.Kulkarni

Chartered Accountant

766 Points Posted on 08 December 2015

You cannot take tds credit if you don't offer income for taxation.

CA Vap Patel

Practice

898 Points Posted on 08 December 2015

Hi, AR

As per section 139(9), of IT Act, 1961, if you haven't offered your income for tax in respect of which you have claimed TDS credit then your return will be consider as defective. There is nothing specifically mention in the act but income tax guidelines are there, where they have mentioned the reason for return to be consider as defective and one of the reason is when you claimed TDS credit without offering income for tax.

RAKESH DUBAL

TAX CONSULTANCY

28 Points Posted on 08 December 2015

If a person is maintaining books on Cash Basis. Then whatever TDS credit received by him is an income. Accordingly income amount is equal to TDS credit received. Yes you can claim TDS but same amount should reflect as Income.