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Tds deducted and filed but corresponding payment not made

Ram (NA) (98 Points)

11 July 2012

I am a consultant. I have an entry in my Form 26as about an amount paid to me from a client and relevant TDS deducted in March 2012.

But that particular payment has still not come through to me from the client and could be further delayed or even never be made (potential bad debt).

As my Form 26AS shows that this payment is already made and TDS deducted. How should I show this in my return?

Its very confusing for me and all help is appreciated.

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4 Replies

Tejas Jain (Chartered Accountant) (314 Points)
Replied 11 July 2012

In this case if your client has made Provision in his books of account for the year 2011-12. You should show this income in the return for FY 2011-12 and claim the benefit of the TDS . If you don't receive the the payment in FY 2012-13 after making necessary efforts you can claim the Amount as a bad debt expenses in the FY 2012-13 by debiting the same to your P & L account.

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Vandana Mulchandani (Finance Manager ) (9227 Points)
Replied 11 July 2012

Originally posted by : Tejas Jain
	In this case if your client has made Provision in his books of account for the year 2011-12. You should show this income in the return for FY 2011-12 and claim the benefit of the TDS . If you don't receive the the payment in FY 2012-13 after making necessary efforts you can claim the Amount as a bad debt expenses in the FY 2012-13 by debiting the same to your P & L account.

Agree with Tejas

Ram (NA) (98 Points)
Replied 12 July 2012

Thank You.

In case I do get the payment this month. Can the same system be followed. I will show that the income has been received at the earlier date (i.e. before March 31st 2012) given in the clients books and claim TDS.

So when I file taxes in 2013, I dont have to again show this income as I am already showing it in this years IT return.

Tejas Jain (Chartered Accountant) (314 Points)
Replied 13 July 2012

Yes If you get the amount in this month thn too same system should be followed and you need not to show the same income for the year 2012-13. By the which kinds of consulting services do you provide..?