CA. Shikha (Chartered Accountant) (4143 Points)
04 July 2008The assesse who is a professional is maintaining the accounts on cash basis.
He received the Tds certificate on FEES debited by the company on 31st March 2008 for FY 07-08.
But he receive the payment on 30th June2008 and on the same date, he credited the income.
My Query is WHETHER THE ASSESSEE SHOULD INCLUDE THE INCOME IN THE YEAR OF FY 07-08 OR FY 08-09?
Ajay Kumar Sana
(CA & CS)
(48 Points)
Replied 04 July 2008
In my opinion, assessee should include in the year of receipt.
Late CA Sampat Jain
(Chartered Accountant)
(4772 Points)
Replied 04 July 2008
TDS FOLLOWS THE INCOME
INCOME FOLLOWS THE ACCOUNTING SYSTEM
seetaram kumar
(CA Final (First Group Cleared))
(109 Points)
Replied 04 July 2008
Hi Shikha,
As you have said that the assessee is following cash system of accounting and the basic principle of cash system is recognize it as income whentever you receive the cash. So the cash which is received during the year 08-09 should be recognized as the income of 2008-09.
Regards
RAM
naveen jain
(Chartered Accountant)
(57 Points)
Replied 04 July 2008
dear
In my opinion ass should make provision by credited and debited TDS amount whenever he recive TDS refund he cain credited as income by debiting such provision
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