Tax implication

[Guest]

I got a gift cheque from my agency business and tds was also deducted.But till now cheque is not recieved. what will be the tax implications if i receive the cheque and deposit it in April. For which AY it will be taxed.

[Surender Gupta]

It is general understanding that the credit of TDS is available in the year in which you offer the related income chargeable to tax.

AI Summary

TDS credit availability governs which year gifted agency income is taxed when the income is offered for tax. A taxpayer received a gift cheque related to agency business with TDS deducted though the cheque was not yet received; the adviser advises that TDS credit is available in the year in which the taxpayer offers the related income as chargeable to tax, so taxation and credit follow the year of offering the income for tax purposes.