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Defective Return

Vikash Kumar (B.Com) (52 Points)

29 June 2019

Dear Sir/Mam

I had filed ITR-3 which has been got defective return due to credit for TDS has been claimed but the corresponding receipt/ income has been omitted to be offered for taxation.

As we are booked income as per accrual basis not as per income. But the department get issued return as defective.

any solution for the above notice.

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3 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (166227 Points)
Replied 30 June 2019

One option is to rectify the earlier return & claim TDS there. For this year you cannot claim that TDS, unless income is offered to tax.

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Vikash Kumar (B.Com) (52 Points)
Replied 30 June 2019

How can we claim in earlier return, if TDS deducted in this year. Sir how can we show our gross receipts as per 26AS, becoz TDS deducted on payment basis. and gross receipts shall taken on accrual basis. Amount which we had received in current year, the amount comes from earlier year debtor. not from bill raised. If we will show our Gross receipts as per 26AS then there will be mismatch with Gross turnover and GST return.
Need your guidance.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (166227 Points)
Replied 01 July 2019

TDS is not just deducted on payment basis, it is to be deducted on earlier of payment or bill receipt. Even if paid late, it has to be as per the date of credits to the creditor.

As a rule, TDS has to be claimed against income offered, whichever year you claim.