|QUERY:||Number of professionals including C.A., C.S., Architects, Interiors and Business man like brokers are maintaining books on cash basis (receipt basis) and claiming TDS in the year of receipt of income irrespective of the year to which it pertains. Before introduction of e-filing system, such claim of TDS was allowed in the year of receipt of income. This was settled practice. But after e-filing regime, where credit is given on the basis of 26AS, such professionals and brokers are not getting credit of such TDS due to mismatch of the year. On this account many rectification are also pending.
Kindly enlighten how to overcome this problem.
|ANSWER:||As clarified by CBDT and prudent accounting practices, you should account TDS in the fees only. Any difference between actual TDS claimed by you and from AS 26 may be informed to the Assessing Officer for corrective action for issuing refund/ raising demand notice. As pointed out by you, rectification in several cases are pending. Further, ITRs 4, 5 & 6 contains columns for both TDS deducted by the payer and TDS claimed during the year by the assessee, which should be filled in carefully to overcome the aforesaid problem.|
|EXPERT:||CA. H. N. Motiwalla|
|CATCH WORDS:||demand notice, rectification, tax deducted at source|
Opinion Of Eminent Legal Luminaries On Controversial Issues
How To Reconcile Mismatch Of TDS In Case Of Assessee Maintaining Books Of Account On Cash Basis?
One comment on “How To Reconcile Mismatch Of TDS In Case Of Assessee Maintaining Books Of Account On Cash Basis?”
Credit: Several of the queries and answers are reproduced with permission from the AIFTP Journal. We thank AIFTP for generously allowing us to host their research material.
Disclaimer: The contents of this document are solely for informational purpose. It does not constitute professional advice or a formal recommendation. While due care has been taken in preparing this document, the existence of mistakes and omissions herein is not ruled out. Neither the author nor itatonline.org and its affiliates accepts any liabilities for any loss or damage of any kind arising out of any inaccurate or incomplete information in this document nor for any actions taken in reliance thereon. No part of this document should be distributed or copied (except for personal, non-commercial use) without express written permission of itatonline.org