I am a doctor(a professional) receiving primarily professional fees and i regularly make use of 44 ADA for my tax purposes. I make use of the "cash" method of accounting where i pay taxes for the fees i receive based on the time of actual receipt.
eg: for the work done in the month of march 3018, i receive payment in April 2018 and pay tax for the amount i receive in the next financial year only (ie FY 2018-2019).
But now a confusing thing as come up. I receive payment for companies (under section 194 J) for the technical advices i give them and the studies i conduct for them. These amount to only a small fraction of my total receipts-but i do get such receipts
Now for a work i did in FY 2018-2019, suppose the company issues a cheque in my name in March 2019. They will cut 10% TDS under section 194J in mArch. This will come in FY 2018-2019. It will show up in my 26 AS in FY 2018-2019. But this cheque has to then come by post and i may receive it only at the end of March 2018 or maybe early April 2019. In any case i think i will be presenting the cheque to my bank in April 2019 only
My query is...can i present the amount i received as if received in FY 2019-2020? (which is the truth really in my case). Do i need any proof to show that i received the cheque only in April 2019. ? Will the date of amount credited in my bank (as evident from bank records) be proof enough? Will the dsparity between TDS and my payment of tax falling in two FY be a problem for me?
Let me also clarify...i am not looking for a "safest approach". I simply want to know whether what i intend to do is legal and the correct way to do it legally
CAclubindia
