Claim TDS in the year you show Income.

Claim TDS in the year you show Income.

Someone Asked in a Yahoo Group

Can anyone throw light on the following:

Q1. The assessee has received a TDS certificate for FY 0506 towards TDS deducted on advance payment made by a Customer in FY 0506. However, the asseseee is going to raise the invoice and account as income only in FY 0607. In this situation, when should the assessee claim the TDS certificate - in Return of Income for FY 0506 or FY 0607?

Q2. Say in another case, the assessee is following cash basis of accounting but the payer has deducted TDS on accrual basis and issued the certificate. Will it follow same treatment for TDS certificate as above?

The simple rule according to law of Income Tax Act is to claim the deduction in the year