Please can you assist in the following:
What is teh recent amendment in allowing TDS credit by the govt. Eg. If the co A raises an invoice on Co B in year ending mar 2010 & co B accounts for it in the next year and gives the TDS credit in the next year, would co B entitled to take the TDS credit in year 2011 or how would it work under the new changes.
Looking forward to your responses. Thanks
Dear Sir/Madam,
Rule 37BA (3)(i) Credit for tax deducted at source and paid to the Central Government, shall be given for the assessment year for which such income is assessable.
Therefore Credit to the payee shall be allowed in the year in which income (on which TDS has been deducted) is offered to tax.
So if payee treats this income in FY 2009-2010 then also return is to be filed in July (or September) there is still time to get TDS certificate in respect of deduction in the first quarter since due date of filing TDS return for first quarter precedes the due date of Filing Return of Income for the year previous to that.
Otherwise the only option is to revise the return & claim it (it may requires assessee to first pay the amount of tax due & then claim refund but in that case assessee can always request the payer to give the certificate before the due date of filing return of Income)
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