Credit for TDS u/s 199

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Adithya Kiran.A (Querist)
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16 January 2011 Hi everyone. My query is that as per sec.15 salary income is chargeable to tax on due or receipt basis, whichever is earlier.But as per sec.192 Tax shall be deducted only at the time of payment.In such a case whether the credit for TDS can be claimed U/s199 in the year in which the tax has been actually deducted though the income in respect of which such tax has been deducted is assessed in the earlier A.y.

Ravikant

Ravikant (Expert)
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16 January 2011 Yes, you can defer the utilisation of TDS credit in subsequent years.

Adithya Kiran.A

Adithya Kiran.A (Querist)
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17 January 2011 Hello sir logically i can agree with your view. But in sec.199 it is clearly stated that the credit for tax deducted is allowable only in the A.Y in which the income is assessable. So can you substantiate your view with any case law or any other section.

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Ravikant

Ravikant (Expert)
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17 January 2011 The provision to defer the credit is provided in the return itself, take a look,,