Question ID : 40504

intimation received for the Assessment year 2018-19

the Assessee is carrying the business of Clearing and forwarding (CHA) and received from their customer reimbursement of expenses and the service charges but the customer has deduct the TDS on inclusive of reimbursement of expenses so there is a Mismatch in receipts as per ITR and 26 As . The assesee has not omitted any income but shown in the ITR as net (excluding reimbursement of Expenses) because the reimbursement of expenses is not the income of the Assesee so in that case how to be proceed with Income tax authorities . So please give your valuable suggestion on this matter along with any notification or circular if any .

Two options are there: 1) ask the Client to Revise the TDS Return with correct amount of Service charges only(i.e.excluding the Reimbursement charges). No need to revise the TDS amount.After the correction has been done there will be no mismatch in Receipts as per 26As and ITR. Then file E-Rectfication of Return for the concerned year. 2) File rectified Return ( by uploading xml with these correction)showing the Reimbursement Expenses as your Income to match the Receipt as per 26AS and ITR. Also show the same amount as Expenses also. Total Income should not be changed from the processed return.