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Defective return 26as difference

nitinjain (accountant) (395 Points)

01 August 2023

Dear sir/madam

We have received intimation of defective return due mis match in 26as and itr income difference

we started a construction work of govt where some amount received as advance after deduction of tds and we reported in gst return as advance received.
our work is under process so how can we claim tds and show this receipt as income.
please guide how to treat this since we not claim tds and not showing any income from business in f.y.2022-23

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8 Replies

sabyasachi mukherjee (26073 Points)
Replied 01 August 2023

Pls rectify the defective return and revert.

RAJA P M ("Do the Right Thing...!!!") (127177 Points)
Replied 02 August 2023

Book the labour works accrual basis and claim the TDS...

Eswar Reddy S (CFO- at NHTF) (58213 Points)
Replied 02 August 2023

Considering the practical difficulties , Income Tax Department has given option to carry forward of Tds from previous FY to subsequent years or brought forward of Tds from previous year to the year of income recognition.

So you may work on it

7 Like

RAJA P M ("Do the Right Thing...!!!") (127177 Points)
Replied 02 August 2023

Yes I agreed.

nitinjain (accountant) (395 Points)
Replied 02 August 2023

We carry forward the tds and not book any income from business so the intimation received reason below.

The gross receipts shown in Form 26AS are higher than the total of the receipts shown under all heads of income, on which credit for TDS has been claimed, in the return of income filed. Thus, while credit for TDS is being claimed in the return of income, the corresponding receipts are not fully disclosed in the respective income schedules. Hence, the return of income filed is regarded as defective, as per clause (a) of the Explanation under section 139(9).

CA. Umesh kumar (ca.umesh11@gmail.com) (1465 Points)
Replied 02 August 2023

File Revised ITR under section 139(5) or file under section 139(5) and rectify mistake

Manish (CA) (1076 Points)
Replied 02 August 2023

Ensure filling TDS schedule with no TDS claim and carried forward amount appears correctly.

sabyasachi mukherjee (26073 Points)
Replied 05 August 2023

Defective return is dealt in the following way:
1. all items must be filled in the manner as indicated in the return form. if any schedule is not applicable strike as namaste
2. the tax paid on or before the due date of filing of return as per sec 140A.
3. the provision has been amended by the finance ACT.
4. under sec 139(9) return proof accounts, taxes are being considered.
5.defective other than specified defects