I have received Rs 90,000 as advance in the year 2009-10 on which TDS has been deducted and TDS certificate is received. Do we have to offer the above as income as TDS has been deducted or is it ok if i take it as advance received? If i have to offer it as income, kindly mention the relevant section.
Menu
Is Advance received is taxable if TDS is deducted?
Replies (1)
Hi Nitish,
U can show it as advance received, no need to consider it as income of the year in which TDS has been deducted.
Next question - will this TDS be allowed in the year in which this receipt will be shown as Income?
Ans - Rule 37BA(3)
(i) Credit for tax deducted at source and paid to the Central Government, shall be given for the assessment year for which such income is assessable.
(ii) Where tax has been deducted at source and paid to the Central Government and the income is assessable over a number of years, credit for tax deducted at source shall be allowed across those years in the same proportion in which the income is assessable to tax.
Related Topics
CAclubindia
