Income for the month of feb 2021(Fy 2020-21) , tds deducted by the buyer and wrongly filed in 2021-22 -Q1. can we claim tds in next year, and income declare in current year?
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Quick Summary
This discussion addresses a situation where TDS was deducted in February 2021 (FY 2020-21) but mistakenly filed in the first quarter of FY 2021-22. The core question is whether the income can be declared in the current year and the TDS claimed accordingly. The consensus is that TDS can be claimed in the year the income is offered to tax, as per Section 199 of the Income-tax Act, 1961, distinguishing between the financial year of earning income and the assessment year.
There are two concepts one 1. Financial Year is the year in which income is earned and accrues. 2. Assesment Year is the year in which income relevant to the previous year is assessed.