Taxability of professional

I have recd professional fees.. I have accounted on cash basis and my client had accounted it on merchantile basis and accordingly the TDS was done on merchantile system.. there is a mistmatch of TDS due to different accounting policies followed.. and I claim TDS in d year of reciept of income.. now I have recd a income tax notice for wrong claim of tds and have issued notice for income tax payable..does any1 has a supporting case law / judgement or circulars..?? for claiming of tds.. the department is gng on system.. say u have claimed it in ay 11-12 same is not reflected in 26as of ay 11-12... but it is reflecting in year ay 10-11
 

Replies (2)

Mr. Rohith...

Your case is little bit confusing...

I did not get what you wanna say...

Situation 1:

Let say you recd. cash on 30.03.2012 and your client accounted it on 01.06.2012.

Then you will show it in AY 2012-13 return and you dont have form 16 in your hands you have to pay tax while returning AY 2012-13. And in AY 2013-14 you will receive form 16. So you have to file return asking for refund.

Situation 2:

Let say you recd. cash on 30.04.2013 for the professional services rendered in Mar-2012 and your client accounted it on 30.03.2013.

Then you will have file AY 2012-13 return with option forwarding your credit to the next assessment year. And in AY 2013-14 you will income tax return claiming previous assessment year's tax credit.

Now.. Please explain where you stuck... (If I am not wrong in assuming your situation).

Your client deducted TDS in AY10-11. You did not claim the TDs

You got payment in AY 2011-12 and you claimed it in that year.

While filing return for Ay 2010-11 you should have not claimed TDS. You should have put total TDs in column 6 and less amount in column 7 of Sch TDS (2).

If you already claimed TDs in Ay 2010-11, you cannot claim it again in Ay 2011-12.

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