TDS

Let me know one thing the example u have shown  tax payable 100000 less tds 55000 pertains to which financial year.?

yes TDS should have been adjusted against the tax liability.

Mr. Manoj plz their may be possible mistake in journal entries plz check any provision for income tax entry and its leger to see how is is it set off either by whole payment or wrong set off

if in case the tax is paid fully then it is that tds is not claimed and it cannot be claimed now so hence u can write off that TDS amount

U check the journal entry passed against income tax provision in the books of FY 2007-08. u will come to know the idea if u dont have that ledgers then easily write it off

not satisfied, plz give the details that i can easily understand

just write off that tds amount u cannot utilise it

Please clarify the Question

Actually during finalisation of accounts an entry is passed:-

Pl a/c Dr

To Provision For Taxation-the amount will be your tax liability

then u pass an entry:-

PFT a/c Dr

To TDS

To Advance tax (if any)

To bank(bal fig)

As u are saying there was tax liability of Rs. 100000/- then i guess the above two entries were not passed in your book mistakenly that is why TDS is still shown in your BS.TDS (asset) is only shown in BS when there is no tax liability and u r elegible to get refund of TDS paid.

Accorfing to my knowledge if he has to claim tds then he has to file revised return for AY 2008-09