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TDS Deduction

Bhanu (Web Developer) (32 Points)

07 July 2010

In Financial year 2009-2010 my billing with a client crossed Rs.55,000 and at the end of the year in March2010 they deducted TDS from my last bill.

(Rs.55,000 is not 1 bill but total of multiple bills for the whole year 2009-2010)

I was told i will get TDS certificate in 1-2 months.

Today what they are telling me is as the TDS was deducted in 2010 i will get the TDS certificate/Acknowledgement in 2011.

Is that true?

The services i provided them was website building, corporate technical trainings. My company is a sole proprietorship company.

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5 Replies

Amir (Learner) (4016 Points)
Replied 07 July 2010

Dear Bhanu,

Rule 31(2) says - The certificate mentioned in sub-rule (1) shall be furnished within a period of one month from the end of the month during which the credit has been given or the sums have been paid or, as the case may be, a cheque or warrant for payment of any dividend has been issued to a shareholder:

As you can see what rule says is - period of one month but I understand in many cases tds certificates are being given on annual basis.

So for u it is important to identify in which FY ur client has booked ur last invoice - If it is in FY 2009-10, then they should have provide you its certificate by now, since u have mentioned that they are saying that they will provide it in 2011 then most likely they have considered ur invoice in FY 2010-11.

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Bhanu (Web Developer) (32 Points)
Replied 07 July 2010

but they deducted the tax for invoice of 2009-2010. Is it possible for them to deduct tax of 2009-2010 in 2010-2011. Is it possible to file last year TDS this year?

I dint give them any invoice in 2010-2011 yet.

Bhanu (Web Developer) (32 Points)
Replied 07 July 2010

I also came across this link

https://law.incometaxindia.gov.in/DIT/File_opener.aspx?page=ITRU&schT=rul&csId=63a2fd16-1c59-43a6-9ee9-2bf5dd39ae54&rNo=&sch=tds&title=Taxmann%20-%20Direct%20Tax%20Laws

Amir (Learner) (4016 Points)
Replied 07 July 2010

Dear Bhanu,

U have come up with the important question that will u be allowed to claim this TDS in next year.

Answer is TDS Credit is allowed in the year in which the income that has suffered the deduction is offered to tax

The link which u have provided is having the latest provisions regarding issue of TDS certificates (so if they have accounted for it in FY 2010-11 then also they should be able to provide the certificate after every quarter)

U should folow up with ur client otherwise u will be required to revise ur return in order to claim TDS.