timming difference of income accrued and deduction tax at source by payer

[Rakesh Bansal]

Sir,

One of my client received some income on which the payer has not deducted any tax in the year of payment. My client filed his ITR declaring the income and no claim for TDS was made. In the succeeding year, the payer booked the payment made last year as current expenses and deducted tax at source. Now there is timing difference between the income accrued and the year of deduction i.e. income vis a vis form 26AS. My query is how to treat the income in succeeding year to tally it with 26AS when the income has already been considered on mercantile basis in preceding year?

[Shilpi Jain]

GST would be liable as per the provisions of time of supply. If that is complied with then any other reason for differences with books can be given as a reconciling difference in Form GSTR-9C. Further comparison with 26AS is not required for Form GSTR-9C.

[Rakesh Bansal]

Thanks for the reply. however my question pertained to Income Tax and not GST.Regards

AI Summary

Guidance Sought on Aligning TDS Discrepancy with Form 26AS for Income Previously Declared on Mercantile Basis. A client received income without tax deducted at source in the payment year and filed their income tax return without claiming TDS. In the following year, the payer recorded the payment as current expenses and deducted tax at source, creating a timing difference between the income accrued and the deduction year. The query seeks guidance on aligning this discrepancy with Form 26AS, given the income was previously declared on a mercantile basis. A response mistakenly addressed GST compliance instead of the income tax issue, and the original poster clarified their focus on income tax.