Tds for next year

I am a sole proprietor, I have been maintaining books and paying taxes as on cash basis, I have received couple of payments from my clients, which i had billed in End March 2013 and the payment was received in April / May(next financial year) Although the companies had paid us in May they had provisioned the TDS in March 2013, which reflects in my 2012-2013 forms 26as.

The Challenge is that if I take these payments in last year, my entire accounting standard changes, also i end up paying additional taxes on higher slab last year on income which was not their actually.

Questions : Can I claim the Form 26 AS TDS for 2012-13 in 2013-14 / as the income has actually come in 2013-14. In ITR 4 Schedule TDS2 also has the provision of showing under the following 3 points Financial year in which TDS is dedcuted Total Tax Deducted Amount out of (Total Tax Deducted) claimed this year - So I only put the TDS of the amount collected till March, Now if I do this and only put data till march end, how do i treat this in the next year return, would i have challenges in getting this easily done next year 

Any other suggestions?

Replies (1)

The TDS has to be deducted on amount credited or paid w/e earlier. So this problem could have arisen even if you were following mercantile system.(If the company deducts TDS on advance paid)

In my opinion there is no problem in claiming the lesser TDS amount this year and remaining next year as you have rightly pointed out that there is provision in ITR 4 for the same.

In the next year (FY 2013-14) in Sch TDS 2, column 5 should indicate  FY 2012-13, col 6 should show total TDS of that deductor and column 7 should show the remaining TDS claimed in FY 2013-14.

As for the challenges, when the 26AS does not tally with your claim you can always expect some queries. But you can easily explain them.

 

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