TDS on interest for 2 years

Hi

One of the entity has given interest for 2 years together and have deducted TDS on the entire amount. Now as per 26AS, two years interest is showing as 1 year income. This is increasing the tax liability by a great extent. Is there a way to segregate income in 2 years (entire TDS deducted in current year), so that tax liability can be rationalised.

 

Replies (4)

Ask the deductor to rectify the TDS return by bifurcating the interest liability as per each quarter/FY...

Under mercantile system of accounting , interest payment by deductor must have been credited on accrual basis. And on accrual TDS might have also been deducted.

If it's not so done by deductor then it's a failure by him to comply with TDS provisions.

On the other hand you are also supposed to take interest income on accrual basis.

Sort out this issue with TDS deductor.

Sort out the issue with your accountant also.

Any delay is detrimental to both.
Deductor is not ready to accept his mistake as it will appear that there is a delay in deduction and deposit of TDS by him. Do we have any other way out for this..
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