TDS Claim under Cash System of Accounting

Logically speaking the credit for tax deducted should be taken only when the income is declared for tax purpose... However there are people who show income in year of receipt but claim TDS benefit in the year for which it is received..

Method of accounting two types one is mercantile system ie on accrual basis and the other is cash basis ie receipt basis. Hence whenever there is receipt of revenue the TDS implication is also arises. then accounting is to be simultaneous in the same year.

hope the implication is clear

As per notification 28/2009 dated 16.03.09  Rule 37 BA credit for tax deducted at source shall be given for the assessment year for which such income is assessable. Hence if an assessee follows cash basis of accounting and recognises income in 2008-09 TDS credit wil be available to him  in 2008-09.

take this example

deductor say x ltd. is on accrual sysyem and deducts tds of of ca on audit fees, but the fees on which tdsis decuted is not given in same year, but any how tds decuted is also the fees realised hence should offered for tax in the same year

 Mr Vinay Chopra is correct. The benefit of TDS will ne given in the year the income is accounted for. However sometimes it has practical difficulties but on proper explanation they allow credit.