TDS AND INCOME IN 26AS

(A)I have provided service of Rs. 100000 to Govt. Dept and raised Tax invoice dt.20-03-26 so made accounting entry of amount            received on 25-03-2026( FY 2025-26) as per below

                    Bank A/c Dr. 99000

                    TDS A/c Dr.   1000

                                   To Service Income (credited into P & L) 100000

          but The Govt. Dept. deposited TDS challan in April-2026 for the FY/TY 2026-27 instead of 2025-26

(B) as Service Provider I recognized the income for the F.Y. 2025-26 but my the same is not reflacted in 26AS because Govt. Dept deposited the TDS for FY/TY 2026-27 instead of FY 2025-26 but now I have calculated the profit  including Rs 1 lac Income and made payment of remaining Tax.(without Rs 1000 TDS)

(C)The next year i.e. FY/TY 2026-27 the income of Rs 100000 and TDS of Rs. 1000 reflected in 26AS of FY/TY 2026-27 When i will claim the TDS of Rs 1000 for FY/TY 2026-27, The income should be also included for FY 26-27 ( You can claim TDS and  the income (on which TDS deducted) should be credited in the same year but i have already credited the Rs 100000 income in FY 2025-26 so 

               (a) how can i pass account for FY 2025-26 entry regarding that ?

               (b) how can adjust Income of Rs 1 lac already recognized in FY 2025-26 and TDS of Rs 1000 (reflected in Balance sheet) make any rectification entry in FY 2026-27 ?

 

Replies (1)

Keep the income in FY 2025-26 to follow the accrual system. Carry forward the $₹1,000$ TDS as an asset in your Balance Sheet. In your FY 2026-27 tax return, claim the TDS credit by explicitly linking it to the income offered in the previous financial year using the specific columns provided in the ITR forms.

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