our company received advance payment for work Rs 1,00,00,000/-, TDS of Rs 2,00,000/- deducted and deposited by the party. actual work was done in next year and also income shown in next year, this year it has been kept in balance sheet under liability. AO is saying that when income has not been recognised this year therefore tds credit won't be allowed. Help me quoting some section or circular or other. Urgent, please
Yes. in case advance payment is received and TDS deducted by the payer, you should carry forward such TDS claim of credit to next AY. income and TDS and both have to match in the FY return ITR. The AO is right in it's saying such.
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