I am a self employed engineering consultant having annual professional income of around Rs 22.0 L and hence registered under GST. For March’ 20 I raised an invoice of Rs 1.2 L and received payment in April’20. I included this invoice while filing GSTR 1 and 3 B for Mar’ 20 and hence included in the turn-over for FY 2019-20.. My client have not booked this invoice in Mar’ 20 and hence while issuing TDS they have not considered this in FY 2019-20. They will include it in FY 2020-21. Now while filing IT return if I don’t include this in FY 2019-20 there will be mismatch with GST turn-over. If I include there will be mismatch next year since the client will show it next year in TDS. So how do I go about it ?
In my opinion you should include it in the next year income. If any query comes from the department, you can very well explain the facts on detail
There can be no of reason of difference of income tax income and GST income.
This will solve your TDS match problem also.
Since invoice has been raise in March and received by him in march. How he will deduct TDS in next year as TDS needs to be deduct on credit or payment whichever is earlier.
However if this is the scenario you can show it as sale return in march and again raise an invoice in April if he is anyways going to deduct TDS in April.
Because prima facie if you show income in FY 2019-20 and he deducts TDS in FY 2020-21 there will be an issue.
Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.
Thank you
Because of the lock-down TDS was reflected in Clients books in May'20 i.e.on payment basis and not on credit basis.Hence it will be shown in form 16 of next year. Meanwhile I filed GST return for March' 20 including this invoice Regards
Yaa, being professional you can also show income tax return on receipt basis. Hence, it is advisable to show in the next year. You can get in touch if you want further detail understanding.
Invoice could be shown by your client in march and pay tax on same.
However that's not the issue and anywhich ways there can be difference between turnover of GST and income Tax as in GST selling capital asset is also turnover and you need to pay tax even on accepting advance.
So you can include the amount in Income tax in next financial year so that there is no issue in matching 26AS or else issue credit note and again issue bill in this financial year.
Hi,
Nothing to worry about. While, filing your return of income, you can include the amount in your tax return. In TDS schedule, there is an option to clarify this mismatch that income is recorded in the current year but tds will be reflected next year.
Dear Sir,
Hope you are doing well !!
There is no need to worry.
You can include the same in current year return and clearly the same in tds schedule.
It is advisable to take a phone consultation for detailed discussion.
Option 1
You can ask your client to book in March 20 and revise the TDS return for the quarter ending 31.03.2020. The due date for deposit of TDS of March 20 was 07.04.2020 and last date for filing of TDS return was 31.05.2020. The TDS was Rs.12000 (i.e. 10% of Rs.1,20,000) and interest would be 6 % (i.e.1.5% p.m. for 4 months as TDS was deducted in May 20). The interest would amount Rs.720 which you can bear and pay to the client. TDS revision can be done online without too much effort and the TDS deducted in May 20 will get adjusted against March 20 TDS. In this way this error can be rectified.
Option 2
You can file ITR without considering income of Rs.1.20 lacs i.e. on receipt basis. There is no evasion of tax i.e. GST or income tax. Scrutiny will be attracted from Income tax department only. Prepare and produce reconciliation statement. There is no option to adjust future TDS with past income. Option exists with past income and past TDS. In F.Y. 2021-21, CPC will again consider it as an income. It will get rectified only by filing manual application which is cumbersome.
