Electricity board gives interest upto 31.03.2011 of500000 on security deposited. it deducts and deposits the tds100000 in the m/o may and balance400000 is adjusted in the bill of May. Now the problem here is that income is of previous year ending 31.03.2011 but the Tds certificate is issued for the financial year 2011-12. how can the entry be booked in accounts?
INCOME IS BOOKED IN FY:2010-11,
AND TDS IS BOOKED IN FY :2011-2012 i.e advance for assesment year 2012-2013
Income will be booked in the current year. However since the TDS certificate relates to next year , the same can be used for tax purposes for the year to which the certificate is issued.
Shyam Joshi & Associates
Pune
B.Com
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Aggarwal Sarawagi and Co
New Delhi
CA
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