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TDS credit is given for the year in which the related income is assessable. The ITR lets you carry TDS forward to a later year if the income is offered later. Mismatched years are a common reason for short credit.
ITR
TDS credit in a different year: reconcile before filing
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Provisions
Sec 199, Income-tax Act 1961; Rule 37BA, Income-tax Rules 1962 (now Rule 203)
Analysis
If you follow accrual and the March 2026 invoice of ₹1,00,000 is income for FY 2025-26, but TDS of ₹10,000 was deducted in April 2026, it appears in 26AS for FY 2026-27. You claim it in the year it shows, but the income is in the earlier year, so tax for FY 2025-26 may be short. The ITR schedule has a column to carry forward TDS where income is offered in a later year. Plan the year end with clients to reduce this.
Close
- List invoices near year end and when TDS was deducted
- Decide the year each income belongs to
- Claim TDS as the law allows and use the carry forward column where income is later
- Keep a TDS to income mapping
The 2025 Act number for Sec 199 is not confirmed in our mapping; cite the 1961 section for past years.
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