Professional payment received, TDS deposited, but work was cancelled

This discussion addresses a common issue where advance payment is received and TDS is deposited, but the work is subsequently cancelled, requiring a refund. The main concern is how to prevent this transaction from being incorrectly reflected as income in the recipient's 26AS statement and to manage the TDS deposit. Various solutions are proposed, including the client revising their TDS return, or the recipient refunding the full amount plus TDS to zero out the transaction in their books, though this won't alter the 26AS directly. The consensus leans towards the client rectifying the TDS deposit, as only the deductor can officially amend TDS records with the government.