This discussion addresses a common tax issue where income was declared in one financial year (2019-20) but the corresponding TDS was accounted for in a later year (2020-21). The tax department disallowed the TDS deduction, leading to a demand for tax. Experts suggest the assessee's accounting method (cash vs. accrual) and the year TDS appears in Form 26AS are crucial. Rectifying previous tax returns or ensuring TDS is claimed in the correct year as per 26AS are potential solutions.
First you hv to ascertain 1. in which year you hv income and in which year you will be deducting tds from income. 2. first the tds should be deducted in the same year in which year there is income otherwise not. 3. if there is anamoly.,adjustment must be made.