One of my client had deducted TDS from two of my payments of 20K and 10K few months back, but he forgot to submit the TDS. Now he's saying that since the TDS amount is very less he won't be able to pay it.
He's asking me to return the money he had paid me earlier so that he can send it again to me and also submit TDS for the same.
Is this the right approach? Will the payment be counted twice in my income?
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Client forgot to submit tds, what to do now?
Replies (6)
It seems that TDS amount is Rs. 200 and Rs. 100 only. If he deposit the TDS now and file TDS return, he will be paying interest and maybe revise the TDS return. And to avoid that, he wants you to return the earlier payment, reverse the entry in books of accounts, and then pay the same deducting TDS again, and hopefully deposit the TDS and file TDS return in time to save the interest.
Shouldn't it be Rs 2,000 and Rs 1,000? (10% of total amount)
It will depend on the section under which TDS has been deducted. Section 194C or 194J.
Its 10%. I know that for sure.
Is returning the payment and then taking it again going to count twice in my income?
Not if you reverse the bank entry in your books of accounts. First ask them to issue a fresh cheque, and in return, you may issue a another cheque of the same amount. Request them not to repeat this mistake or else you will have to charge interest/penalty.
Thanks a lot Mihir. This has cleared my doubt.
Will ensure in future that the TDS is submitted on time.
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