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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.
ITR
Income in AIS that belongs to another year
Updated . Every paid answer is checked by a CA. Free AI answers are labelled until a CA verifies them.
Provisions
Sec 143(1)(a) (now Sec 270(2)); Rule 37BA, Income-tax Rules 1962 (now Rule 203); Sec 155(20), Income-tax Act 1961
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.
Close
- Identify the TDS entries that relate to last year's income.
- Disagree and give the earlier assessment year and amount.
- File Form 71 to move the TDS credit to that earlier year.
- Follow up the rectification of the earlier year.
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