If a customer misses depositing TDS with the government, then that amount of TDS can’t be claimed but the company still has to pay Income tax as it would be showing that sales as part of their income. This creates a situation of working capital getting stuck for a year and can be claimed when its customer deposits TDS with the government in subsequent years.
To avoid this situation, what can be done by a company proactively, in Quarter 4, to avail maximum amount as tax credit and save working capital
If the above activities sound like too much of work to be done and if you think it will consume too much of time then you can consider automation of 26AS Reconciliation & follow ups so that you can spend more time on analyzing the data and claim maximum amount of TDS credit and explain the same to auditors.
TDS is applicable on almost every sales transaction (of a company) whether services or material (for goods sales greater than INR 50 Lakhs). TDS deducted by customers is deposited with
May 31, 2023 is the last date to file Income Tax Return for Quarter 4 FY 2022-23 and companies need to ensure that they don’t miss deducting TDS on any