Claim of tds in a year

[Asked by Guest]

We are doing advertising agency business(hoarding) ,we follow the accounting standards and thus advertising contracts ( Invoices)which extend beyond the financial year are bifurcated and those which relate to the concerned year are recognised as income . But the TDS certificates received are usually for the whole amount and we were claiming the TDS amount as shown in the certificate fully in a year itself. Is it advisable to claim the whole TDS amount in a year itself? (Please advise considering the new ITR- (for eg. scheduleTDS2 column 7 ,page no 20 of ITR -4).)

[Surender Gupta]

Generally, tds is linking with the income booked in the accounts. Therefore, the proportinate part of tds is to be claimed where the revenue is booked in more than two year.

AI Summary

TDS allocation: claim tax credit pro rata in the year revenue is recognised rather than in a single year.
Claiming tax credit for TDS must align with revenue recognition: when advertising contract income is bifurcated and recognised across financial years, the corresponding TDS should be claimed pro rata in the years in which the related revenue is booked rather than claiming the entire certificate amount in a single year.