Tds deducted but not filed by client

Hello,

You need not to be confused as the Income has been earned by you and also the paying party has deducted accordingly TDS from your paymnets.

Simply file return with full Income and TDS deucted, 

And ask for the party for the proof in form of form 16A for the TDS deduction, and advise them for fillinh their TDS return as it is not shown in your 26AS.

You need not to worry for the the default made by others

1. If such income pertains to previous year (FY15-16), then by now tax credit should have appeared in 26AS. If not, it means your client has still not filed TDS return. You need to tell them to file the TDS return and such credit should appear in 26AS. If not, IT authorities would not give credit for the tax deducted and you will have to pay tax on the entire income.
2. But if such income pertains to FY16-17, time limit for filing TDS return is not over (which is end of this month) and hence you may wait.

Thank you for the reply. Its for FY15-16. So the client hasnt yet filed the TDS return.

Now my question is how what will be the Income I show.

1) For example if the invoice amount is Rs30000/- and TDS is Rs3000/- and I received Rs27000/-. Because the client hasnt filed the TDS. Should I show that my income earned it Rs30,000 (invoice amount) or Rs27,000 (amount I actually received)?

2)  If the client files the TDS return post July 31st 2016 after I have filed my returns. How will I claim the credit? Will I have to file a revised returns?

Response point wise:

1. Actually, 30,000 is your income but if you think that your client would not pay TDS at all, then you may show 27000 as income because that is what you have received in hand. But again this is debatable.
2. If your client files TDS return post due date (which is more likely the case), then if you show 27000 (instead of 30000), you will have problem. In that case, you will have to revise your return to show 30000 as income (and mention the tax actually deducted by your client as per 26AS).