Can TDS be deducted before making the payment to the party?
some party had wrote a cheque for payment of professional fees in our co.'s name and had also deducted and deposited Tds thereon in the last A.Y. but we have received the cheque in this A.Y. now how do we claim credit for the TDS so deducted?
Claim the TDS in company's income tax return for a.y. 2010-11 if deducted in f.y.2009-10. Why are you worrying about this lot???
Hii Bhawna,
Tds is deducted at the time of Booking of expense or payment whichever is earlier, So deductor is right,
Accounts are maintained on accrual basis so i think you too booked it as Income in that A.Y. ,and you can claim TDs whenever you received the TDS certificate.
In that case amount of TDS Receivable in Balance Sheet will differ from the TDS claim in Income Tax Return. Will that be ok?
credit will be allowed only for the Actual TDS certificates which you presented, A.Y. is irrelevant..
BHUPINDER SHAH AND COMPANY
New Delhi
CA Inter
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