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..
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TDS 26 AS
Replies (6)
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.
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
You can consider sale in fy 21-22 and tds is deduct in fy 21-22 i think no issue in this case Book income in fy 21-22
Auditor may not agree to this since the income has accrued in FY 2020-21
What's best options for book Income
Best option advise by me you have consider income Fy 21-22
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