| Question And Answer | |
|---|---|
| Subject: | Credit of TDS deducted U/S 194Q of I.Tax Act 1961 |
| Category: | Income-Tax |
| Querist: | CA. Arun Kumar Arora |
| Answered by: | Law Intern |
| Tags: | Section 194Q, TDS deducted, TDS U/S 194Q |
| Date: | January 26, 2026 |
Seller has received Advance of Rs.10 Crores from Buyer on 29-03-2025 as advance against supply of goods. On the said sum Buyer has deducted TDS of Rs.95000 u/s 194Q.The said amount of TDS is appearing in 26AS of Buyer.
1-Whether Seller can claim credit for TDS in his ITR for Asst. Year 2025-26 when goods are supplied in next financial year i.e in April 2025.
2-Whether Seller can claim credit for TDS of Rs. 95000 in his ITR for Asst. Year 2025-26 when the whole amount of Advance (net of TDS of Rs. 95000)is returned to Buyer in April 2025 and thereafter there is no dealing between Seller and Buyer.What will be the fate amount of TDS.
1. U/s 199 & Rule 37BA, TDS credit can be claimed in the assessment year in which the corresponding income is assessable. Since the advance received in FY 2024-25 is not recognized as income until the goods are supplied, the TDS credit should be claimed in AY 2026-27.
2. Credit will have to claimed in AY 2025-26 when the advance is returned against Nil income from the transaction.