TDS at credit

since company is mandatorily required to follow mercantile system of accounting. so when income is offered for taxation on accrual basis though the receipt of such income is realized in subsequent fy, hence credit of TDS can be claimed on accrual basis
what do you mean by offered for taxation in three ay

this question i saw in our previous paper of departmental exam.. i m a tax assistant .. not from commerce background... i m confused in this question what it actually means ?

Explain your query with a numerical example. Suppose a company has received Rs 300000 rent in Advance from tenant in FY 2017-18. Annual rent is Rs.100000 . The tenant deducted TDS for Rs. 30000 in FY 2017-18. Now the company has offered rental income of Rs 100000 in FY 17-18. Since only one third of amount on which tax was deducted is shown as Income you shall allow only Rs. 10000 as tds credit in FY 17-18. I.e. credit is allowed to the extent of income offered. Remaining 20000 will be allowed in next two years when the remaining income of Rs 200000 will be offered to tax.

Hope this clarifies. If any confusion remains do let us know

ya i understood ... it is clearly mentioned in Rule 37BA(3)(i) of Income tax Rule !! thank u for the explanation sir

You are most welcome....

sir mere ko TDs return karvana ha 8003043534
9602074444

sir mere ko TDs return karvana ha 8003043534
9602074444