Respected sir,
I am in a Dilema that when to Recognise the Income and Claim the refund on TDS Deducted by Party on Advance given.(e.g.TDS Deducted on Rs.500000 @ 2% for F.Y.2013-14,but actually such imcome related to F.Y.2014-15) and TDS is also reflected in 26AS for F.Y.2103-14
Pls Advice me the correct Treatment
Thanks & Regards
Suman Mishra
If your accounting method is cash basis and ur client's is mercantile basis - such a thing happens.
File rectification request for AY 2014-15[FY 2013-14] C/F the TDS to AY 2015-16 [fy 2014-15]
I hope this helps
TDS has to be claimed in the year of including the corresponding income to tax purposes. Therefore you will have to claim TDS in FY 2014-15.
In return of AY 2014-15, under tds schedule, input the details of tds as deducted by the party, but DO NOT CLAIM IT.
In Ay 2015-16, you again have to input the same details, and now claim the tds.
Hope this helps.
Yes I agree with Rashi Bajaj
@ Bajaj In Ay 2015-16 return in TDS you have to fill c/f column -->AY 2014-15 and claim it [ In case AY 2014-15 is not assesed].
I hope i am correct
CAclubindia
