Self working last year one of institute as a visiting faculty ,but payment not rec'd last one year ,But when C/A Shows me Form 26AS which shows that under section 192 payment has made every month with TDS deposited ( TTL AMT CREDITED Rs. 360000 & TDS 7092 FOR TEN MONTHS ). As per my chartered Accountants instruction clear the pending amt. otherwise it will have problem while facing I.T Return. Kindly suggest.
TDS on visiting faculty is covered u/s 194J not under 192 coz you are not employee of such institution
But any way now you have two options
1 show the income in your Itr and pay tax accordingly
2 deffer the amount to next year (hope you will receive amount in next year) and include income in next year income and pay tax accordingly
Hi,
Hope you are doing well !
Now, you can show your income in current year and pay taxes accordingly.
If you are receiving amount in next year, then show it in next year and pay taxes.
Also, you are not an employee of institute,so TDS should be deducted in u/s 194J not u/s 192.
Please find below the relevant section for your reference:
Section 192 of income tax act deals with provisions regarding TDS (Tax Deducted at Source) on salary. An employer is required to deduct TDS from the salary payable to the employees. When an employer is paying salary to an employee, which is categorised in Income under the head Salary, he is responsible for deducting TDS on an average rate of income tax based on the prevailing rate during the financial year by considering the estimated income of the assessee.
As per section 194J, any person (not being an individual or a Hindu undivided family) is liable to deduct TDS in respect of the following payments made to a resident person:
Fees for professional services
Fees for technical services
Director’s fees (not like salary), or
Royalty, or
Any sum referred to in clause (va) of section 28 [i.e. non-competence fee]
Thanks & Regards,
Payal Chhajed
Yes amount reflected in 26AS means they have paid and deducted TDS so now you have to declare this amount in your return of income ..
Get the amount from institute and file income tax return.
You will have to show this salary in your return of income whether you have received the money or not and pay applicable taxes.
Please specify your exact question in order to advise you appropriately.
Hi
Firstly, TDS should have been deducted under section 194J and not section 192. TDS under 192 shows you as an employee. Get the TDS corrected from the institute.
For showing income in ITR, there are two options:
1. If you're following merchantile accounting- show such income in the current year and claim the TDS deducted.
2. If you're following cash accounting- show such income in the next year; TDS shall be carried forward to next year by filing current year's ITR.
# current year - year in which services have been provide and TDS has been deducted.
I would advise you to go by the 1st option. There is no problem as regards the dues.
However, if the TDS continues to be under section 192, you can opt for option 1 only; cash basis is not allowed for salary.
Dear Sir/Madam,
As per law, TDS on salary needs to be deducted on payment basis. You are required to file ITR-1 with complete matching with Form 26AS and have to declare salary of Rs.360000 along with other income.
Thanks
Hi,
The TDS has been wrongly deducted u/s 192 instead of Sec 194 J. Please get a revised tds certificate from the institute.
Now you can either show the income in your ITR and pay taxes on the same or defer the income to next year and pay tax on the same depending on whether you follow cash basis or mercantile basis of book keeping
Regards,
Nikhil.
