tds benefit

This query is : Resolved

prachi (Querist)
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28 April 2010 i have provided for commission receivable for march 2010 in my books. the party from whom the commission is receivable paid it in April 2010 and paid tds on the same for F.Y.2010-11.(as for it the expenses are for this year) can i take benefit of the tds for my income of march 2010

Rahul Gupta

Rahul Gupta (Expert)
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28 April 2010 If TDS deposited is in respect of the financial Year 10-11, then TDS cannot be claimed in respect of the 09-10 Financial Year.

UDAY

UDAY (Expert)
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28 April 2010 NO. it is not possible because the person who has paid the TDS amt to Govt.dept. will mention AY as 2011-12 so it will be credited to your PAN FOR THE SAME YEAR. So you can not take TDS BENEFITS for FY 2009-10

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taxindiaconnect

taxindiaconnect (Expert)
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28 April 2010 Prachi, You please see section 199, there may be a possibility of the same As subsection 3 of section 199 provides that Board may prescribe the rules for providing the credit of TDS for the year other then in which it has been paid and deposited. The text of section 199 is as following -

Credit for tax deducted.

199. (1) Any deduction made in accordance with the foregoing provisions of this Chapter and paid to the Central Government shall be treated as a payment of tax on behalf of the person from whose income the deduction was made, or of the owner of the security, or of the depositor or of the owner of property or of the unit-holder, or of the shareholder, as the case may be.

(2) Any sum referred to in sub-section (1A) of section 192 and paid to the Central Government shall be treated as the tax paid on behalf of the person in respect of whose income such payment of tax has been made.

(3) The Board may, for the purposes of giving credit in respect of tax deducted or tax paid in terms of the provisions of this Chapter, make such rules3a as may be necessary, including the rules for the purposes of giving credit to a person other than those referred to in sub-section (1) and sub-section (2) and also the assessment year for which such credit may be given.]

Apart from this the possibility may be that the books of your vender may not be closed today and he can make provision on 31.03.2010 for expenditure and deduct TDS on that date. if he agrees to do that, TDS for this date may be deposited by 31.05.2010. This ensures all the compliances. In case of any further clarification please Send me a PM.