Answer

1. F

   Facts

   Deductors sometimes deduct TDS in a later year than when you earned and reported the income. CPC then sees income without a matching entry. You should disagree and explain the year in which you offered it.

2. P

   Provisions and law

   • Sec 143(1)(a) (now Sec 270(2))CPC can adjust the return for listed reasons, but must first tell you and consider a reply given within 30 days
   • Rule 37BA, Income-tax Rules 1962 (now Rule 203)TDS credit is allowed in the year the related income is assessable
   • Sec 155(20), Income-tax Act 1961TDS credit can be allowed in an earlier year where the income was offered in that earlier year, through rectification
3. A

   Analysis

   Rule 37BA (now Rule 203) allows TDS credit in the year the income is assessable, so the income should not be taxed twice. Disagree with the adjustment and state that the income of, say, ₹80,000 was offered in AY 2025-26. To claim the TDS credit in the earlier year, file Form 71 on the portal, which supports rectification under Sec 155(20). Keep the earlier year's return and invoice as proof.

4. C

   Conclusion

   1. 1Identify the TDS entries that relate to last year's income.
   2. 2Disagree and give the earlier assessment year and amount.
   3. 3File Form 71 to move the TDS credit to that earlier year.
   4. 4Follow up the rectification of the earlier year.

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