Tds claim

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

29 October 2011 I have booked income from contract in FY 2008-09 but the party has booked expense in FY 2009-10 and correspondingly issued me TDS Certificate in FY 2009-10.
Question:
1) When can I claim this TDS in Income Tax.
2) Under which provision does it fall.

CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Expert)
Follow

29 October 2011 Income & TDS thereon, must be correspondent to each other in the same FY.

So, if the Income is booked in one year, its TDS can not be claimed in a different year.

Querist : Anonymous

Querist : Anonymous (Querist)

01 November 2011 will u kindly tell the provision ?

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
Follow

27 July 2025 Great question.

### ✅ **Your Situation (Simplified):**

* You **booked income** in **FY 2008–09 (AY 2009–10)**.
* The **party deducted TDS** and **issued TDS certificate in FY 2009–10 (AY 2010–11)**.

So now you’re holding a **TDS certificate** for a year in which **you did not show that income** — a **mismatch** has occurred.

---

### 🔍 **1) When Can You Claim the TDS?**

You can **only claim TDS credit in the year in which the related income is offered to tax**.

That means:

* If you **booked income in FY 2008–09**, then **you can claim TDS only in that FY** (AY 2009–10).
* But if the **TDS was deposited and certificate issued in FY 2009–10**, **you cannot claim it in FY 2008–09** unless the deductor corrects their return.

So, unless the deductor revises their TDS return to **reflect FY 2008–09** as the payment year, **you will not get TDS credit**, even though you reported income correctly.

---

### 📘 **2) Relevant Legal Provision:**

The governing rule is **Rule 37BA of the Income Tax Rules, 1962**:

#### 🔹 **Rule 37BA(3)(i):**

> *"Credit for tax deducted at source and paid to the Central Government shall be given to the person to whom the payment has been made, or credit has been given, on the basis of information relating to such deduction furnished by the deductor in the statement of tax deduction filed by him."*

In simple terms:

* **TDS credit can be claimed only when** the **deductor reports the TDS** in their **TDS return (Form 26Q)** with the **correct PAN and assessment year**.
* Even if you correctly report income, if the **deductor mismatches the year**, your **Form 26AS won't reflect it**, and CPC will **disallow your claim**.

---

### ✅ **Your Options:**

1. **Ask the deductor to revise the TDS return** for FY 2008–09, showing correct payment date and TDS credit.
2. If they won’t revise:

* You **may claim TDS in AY 2010–11**, but only if you **also declare that income again**, which leads to **double taxation** unless claimed with an explanation.
3. You can **file a grievance** with the Income Tax Department through the [Income Tax e-filing portal](https://www.incometax.gov.in) and request **credit based on Form 16A**, but success is uncertain if 26AS doesn't match.

---

### 🧾 **Practical Tip:**

Attach a **letter of explanation** with your ITR (if filing manually or in scrutiny), and retain the **original TDS certificate** and **contract/invoice** proving the income was recognized in FY 2008–09.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now