12 October 2007
Mr.A maintains his books on mercantile system of accounting
Mr.B maintains his books on cash system of accounting
Mr.A deducts TDS on amount payable to Mr.B in F.Y.2006-07 and issues TDS certificate to Mr.B in F.Y. 2006-07 for A.Y. 2007-08 Mr.A makes payment to Mr.B in f.y.2007-08 for Mr.B tds is deducted on income which he has not yet booked in his books for f.y.2006-07
in such a case for which F.Y. year TDS credit can be claimed by Mr.B
13 October 2007
IN such a case you will have to show the tds portion as a cash reciept for the year for which the tds certificate relates and the remaining portion account it in the year in which the cash has been recieved
21 December 2007
With due rspect, I would like to be in disgareement with Mr. Rayan. Section 199 is very clear in this regard.Credit of the TDS deducted will be given to the deductee for the Assessment Year in which his inome is/was taxable. Date or year of deduction of taxes is nothing to do with the credit of such TDS. Yes, I agree there are some practical problems in this field, bu law is law. This type of cases always happns in case of Government Contracts, Professional Fees etc. In the quote case in my opinion and as per section 199, Mr. B will get the credit of TDS in the AY 2008-09. Further more, the new ITR forms are taking care for this typr of situations
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