Query regarding TDS under Cash System of Accounting

1087 views 6 replies

CA Prateek Garg

CA in Practice

1447 Points Joined November 2009

Let me ask the question through a example

suppose, I am providing some service & Maintain the accounts on cash basis

now, I gave a service in F.Y.2009-10 (A.Y.2010-11) % raise the bill in the same year.

now Subscriber deduct my TDS & deposit the same in F.Y. 2009-10 (& give me the TDS Certificate for A.Y. 2010-11)

payment is made by him in the F.Y.2010-11 (A.Y.2011-12) due th cash basis such receipt is surendered in the income of the F.Y.2010-11 (A.Y.2011-12)

now in which Year I should demand the credit of TDS Certificate.

Replies (6)

SACHIN garg

181 Points Joined August 2010

TDS credit shall be taken in AY 2011-12 as credit of tds shall be claimed in the year in which corresponding income is charged to tax

CA Prateek Garg

CA in Practice

1447 Points Joined November 2009

But as I Mentioned Service is provided in F.Y.2009-10 (A.Y.2010-11) & Bill is alsi raised in the same year

Now if Subscriber maintain his accounts under accrual system then he duduct & deposit the tax in the F.Y.2009-10 (A.Y.2010-11). & also in Form 16 he Mention the A.Y. 2010-11.

Now practically A.O. neighter allowed the credit in the A.Y. 2010-11 (because income is not surendered) nor in the A.Y. 2011-12 (because A.Y.Mentioned in Form 16 (TDS Certificate) is A.Y.2010-11)

muthulakshmi

ca student

113 Points Joined January 2009

u can claim the tds on ay 10-11 itself though u r not showing the income..

if any individual salaried person not claim his tds of A.Y.2008-09 and A.y. 2009-2010 (not receive form 16 but shows in 26as ) and also not Filled IT Return of A.Y.2009-10 afterwards. now, In A.y.2011-12 can he claim his TDS deducted by employer..?

CA Mukul Mittal

CA in practice

384 Points Joined October 2009

@ Prateek Garg: TDS can only be claimed in the year for which the income belongs.........therefore, u cannot claim it in the year 2009-10..........

CA Mukul Mittal

CA in practice

384 Points Joined October 2009

@ Gayatri: TDS deducted by the employer shall lapse if the time for belated return expires or assessment procedings against the assessee has been completed...ofcorse the assessee can file an application for rectification in the later case..........