Answer

1. F

   Facts

   TDS credit is allowed in the year in which the related income is taxed. If the TDS shows in a later year than the income, you can still claim it against the earlier year. Form 71 is used to claim credit in the earlier year.

2. P

   Provisions and law

   • Rule 37BA, Income-tax Rules 1962 (now Rule 203)Credit is given in the year the 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) links credit to the year the income is assessable. If you showed ₹2,00,000 income in FY 2024-25 and TDS of ₹20,000 was deducted in FY 2025-26, file Form 71 on the portal to claim that credit against FY 2024-25 through rectification under Sec 155(20). Do not show the income again in FY 2025-26. Keep invoices to show the year of income.

4. C

   Conclusion

   1. 1Identify TDS entries relating to income of an earlier year.
   2. 2Confirm that income was offered in the earlier year.
   3. 3File Form 71 on the portal.
   4. 4Track rectification of the earlier year.

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.