Tax Deductor has deducted TDS on year end expense provision entry. Relevant TDS certificate issued to the concerned party shows the amount of expense provision booked but not paid during the financial year and TDS deducted thereupon.
In such a scenario, what is the remedy available to the Deductee if the amount of provision booked is Excessive and further is not payable subsequently in the next financial year. Form 26AS statement shows credit of the amount of provision and TDS thereupon. The Deductee follows mercantile system of accounting.
The Income Tax Assessing officer of the deductee wants to treat this entire amount of provision as reflected in the Form 26AS statement , as Income of the Deductee and Tax accordingly.
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