ASSESSMENT YEAR of income accrued in FY 21-22, paid in FY 22-23

This discussion addresses a tax query regarding income earned in the financial year 2021-22, but paid and with TDS deducted in the subsequent financial year (2022-23). The core issue is whether the income and TDS should be accounted for in the year of accrual or the year of payment. While the payer has accounted for it in FY 21-22, the recipient believes it should fall into FY 22-23 due to the invoice date. Advice suggests that income is taxable in the year it accrues, regardless of payment date, and the TDS should ideally be claimed in the same year. If a mismatch occurs, carrying forward the TDS to the next year for claiming is a potential solution.