Claiming tds without matching income

Hi friends,

I have a query about claiming TDS.

A builder has paid Rs 10 lakhs to contractor to construct a complex as advance and has deducted tax at source Rs 20000/-. The contractor has done very little work till March 13 but has not billed the builder. The whole 10 lakh appears as advance in his B/s.

My query is that can he claim that TDS without showing 10lakhs as income? There are no other receipts as it is the first year of business for the contractor.

Please reply

Thanks

Replies (2)

Contractor Can claim the Refund of TDS deducted.

 

Yes, the contractor can claim TDS and he can show proportionate income in his financials as per the work he has done and rest he can show as advance.

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