Venu Chaganti (no) (80 Points)
30 October 2012
Dear Friends,
I would like to know .... Is there any provision or facility in the income tax to carry forward the TDS/Advance tax paid to next year?
We don't want to take back the TDS/Advance tax deposited over and above the tax assessed.
We would like to carry forward the excess TDS/Advance tax and adjust against the future year’s tax payments.
Regards
Venu Chaganti
9164113900
venu_fca @ yahoo.co.in
CA. Subhash Dangi
(Chartered Accountant)
(1784 Points)
Replied 30 October 2012
As per the existing Income tax provisions, there is no facility to carry forward to the next year in respect of TDS/TCS/Advance Tax/Self Assessment Tax pertains to particular Assessment Year.
Therefore any excess of such Taxes can only be set off and adjusted in the same Assessment Year by way refund in case of excess levy or demand in case of short levy.
Venu Chaganti
(no)
(80 Points)
Replied 30 October 2012
Dear Subhash,
The following format i found in the ITR-6 of companies, in the last column it is asking "Amout out of (6) claimed for this year".
I feel indirectly it is giving an option to carry forward the TDS.
Can you please look into this also.
|
Sl No |
Tax Deduction Account Number (TAN) of the Deductor |
Name of Deductor | Unique TDS Certificate Number | Financial Year in which TDS is Deducted | Total Tax Deducted |
Amount out of (6) claimed for this year |
| 1 | 2 | 3 | 4 | 5 | 6 | 7 |
| 1 | ||||||
| 2 | ||||||
| 3 |
Regards
Venu Chaganti
9164113900
Yogesh Kumar
(Job)
(180 Points)
Replied 30 October 2012
Dear Venu,
The format of ITR-6 you shared is practically happen for TDS on advance rental in which rent paid is also pertains for next year but TDS has been deducted on payment.
Other case I remeber It can happen in case of interest on sercurities in bank where some period pertains to one financial year and some period to next financial year.
So basically this format is for the TDS deducted against the payment which pertains to two different financial year.
So Mr Subash is correct in saying that there is no provision for carry forward for TDS/Advance Tax and to be setoff against future year liablity.
Venu Chaganti
(no)
(80 Points)
Replied 30 October 2012
Dear Yogesh,
I got a small problem in my company, that....
The vendor of our company is maintaing books of accounts on cash basis and my company is maintaing on mercantile basis.
we issued TDS Certificates for the FY 2007-08 as per our deductions made during the year, but our vendor is accounted in the FY 2008-09. The vendor is asking to change the TDS certicates to FY 2008-09, but the TDS returns are already filed and finalised, now i cannot change the returns.
Hence, if there is any facility to carryforward the TDS, our Vendor can do it and claim TDS for FY 2008-09.
Please suggest some solution for this.
Regards
Venu Chaganti
9164113900
venu_fca @ yahoo.co.in
Yogesh Kumar
(Job)
(180 Points)
Replied 30 October 2012
I also faced the same problem but if I talk practically its better to take the TDS in the year mentioned on the TDS certificates and even tax authorities have no issue with that.
I did the same in my case and well accepted by authorities.
Vijay Kalia
(Chartered Accountants)
(1705 Points)
Replied 23 April 2021
TDS can be carried forward and TDS Schedule as stated above enables carry forward. If S.145 is read with proviso it does mean the TDS is to be claimed in the year in which the income is brought to tax. It may happen when cash basis is adopted by one but other follow mercantile basis. In case of some clients they may provide for professional fee in advance and deduct TDS but services are rendered in the subsequent year and bills are raised accordingly. In such cases too there has to be carry forward as TDS can be claimed only in the year the income is brought to tax,
CAclubindia
