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TDS 26 AS

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dinesh pawar

officer

108 Points Posted on 07 September 2021

our company is services provider. service receiver had deducted TDS in FY 2021-22 which is belong to previous year 2020-21. we can take credit of this income in FY 2020-21.we have booked this Income in previous year 2020-21..what's circumstances of this Error..
please help me urgently..

Replies (6)

Quick Summary

This discussion addresses a common query regarding TDS credit. If your company provided services in FY 2020-21 but the TDS was deducted by the service receiver in FY 2021-22, you can still claim the TDS credit for FY 2020-21, as credit is allowed in the year the income is offered to tax. Even if the invoice was booked in FY 2021-22 by both parties, the income's tax year dictates the TDS credit year.

JGM

Knowledge Sharer

443 Points Posted on 07 September 2021

When was the invoice raised? Was the invoice raised in FY 2021-22 and the services rendered in FY 2020-21? As per the extant TDS provisions, the TDS is to be done either at the time of making the payment or crediting the account whichever is earlier. It is quite possible that the service receiver would have received the Invoice in FY 2021-22 and booked it in FY 2021-22. Accordingly, they would have deducted tax in FY 2021-22.

Having said this, in terms of section 199 of the Income-tax Act, 1961, the TDS credit can be claimed in the year in which the corresponding income is offered to tax. in your case, since the income will be offered to tax in FY 2020-21, the TDS credit corresponding to this income should be claimed in FY 2020-21.

dinesh pawar

officer

108 Points Posted on 07 September 2021

If our company is forgotten to book invoice in FY 2020-21. service receiver is also booked invoice in FY 2021-22. TDS also deducted in FY 2021-22. we can book this Income in FY 2021-22 & we can take TDS credit. it will be disallowed or not..or issue notice