Tds - whether to book this year or next year

I am a professional service provider. My client deducts TDS for my services. 

For many TDS "Date of Booking" comes in next year. Infact payment was also done in next year. But TDS report from Income tax shows that the "TDS Deposited" date comes in current year. I am confused should i show it in the current year or should i show it in next year. 

It should not happen that I end up getting no refund for it. 

I must also tell you that in many cases difference between "Date of Deposit" and "Date of Booking" is more than 2-3 months. How do I manage thing like this. 

Please help me with solutions. Thanks in Advance. 

Replies (1)

Hello,

If you are following Cash basis of accounting, claim TDS in the year in which you receive money from client. If you are following Mercantile (Accrual)  basis of accounting, claim TDS in the year in which income got accrued.

The difference in Date of deposit and date of booking arises because of late remittance by your client for which he will suffer interest. you need not worry about it.

 

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