Non availability of supporting documents of TDS made but not deposited

Legal Ground: Under Section 205, the Income Tax Department cannot demand tax from the assessee if it has already been deducted at the source by the payer.

Evidence Required: Collect alternative proofs such as bank statements showing net receipts, professional contracts, invoices, and internal computation sheets from the hospital.

Action Plan: Claim the TDS in the ITR, wait for the inevitable Section 143(1) notice, and file a formal disagreement online by uploading the secondary evidence and citing Section 205 protection.

Thanks for your views. I have already taken the steps as suggested by you. I even went for rectification u/s 154 but the answer is same. disallowing the TDS. i have now filed an appeal with CIT for the solution. my question is that I dont have any written document other than the net receipt from the deductor as against the full professional charges. in my appeal submission what can I produce as proof of deduction other than this?

If there's no proof of the gross amount. Then show the net receipts as income. Submit revised computation of income to the CIT.

We do not have specific document to justify that short payment is towards TDS. but we have considered gross income as our income and claimed TDS to which the deuctor admits to be true and correct but now not responding for any communication. we have decided to submit a statement wherein there is a gross amount as well as TDS and the net amount which has been credited to our account. your opinion please.

TDS can't be justified without documentary evidence for the gross amount.

Filing revised computation is the reasonable option.

TDS credit cannot ordinarily be claimed merely because the hospital deducted the amount; it should be supported by tax records or other reliable evidence. The assessee should:

• Reconcile the gross professional fees, amounts received and alleged TDS with invoices, bank statements, the hospital’s payment advice/ledger, emails and any TDS certificates or deduction confirmations available. Ask the hospital in writing to deposit the tax and file the TDS statement, retaining proof of follow-ups.
• Check Form 26AS/AIS and the relevant TDS schedules. If the deduction is absent, do not claim credit solely on the basis of the net receipt; report the professional income on the appropriate gross basis and retain the evidence of the short payment.
• If the hospital has deducted tax but not deposited it, the payer’s default is relevant: section 205 of the Income-tax Act bars recovery of the same tax from the assessee where tax was deducted at source. If the credit is not reflected, consider a written grievance to the jurisdictional TDS officer and a claim before the Assessing Officer, enclosing the evidence and requesting that the payer’s default be pursued. The outcome will depend on establishing actual deduction.
• If the evidence is insufficient to establish deduction, claiming credit may be disputed. Keep the amount and supporting records separately documented and address the credit through the return/assessment process as appropriate.

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