TDS MISMATCH

Dear Sir/Madam,

I seek your expert opinion regarding a TDS mismatch issue in relation to one of our invoices and its treatment in Income Tax Return filing.

📌 Facts of the case:

• Invoice Date: 02 April 2026

• Financial Year of income: FY 2026–27 (Assessment Year 2027–28)

• GST: Properly reported in FY 2026–27 returns

• Issue: The customer has deducted and reported TDS in March 2026 (FY 2025–26 / AY 2026–27) instead of the correct financial year.

📌 Problem faced:

• The TDS is appearing in Form 26AS for FY 2025–26

• However, the corresponding income will be offered in FY 2026–27

• This is leading to a mismatch between income and TDS credit across financial years

📌 Customer response:

The customer has confirmed that the expense belongs to FY 2025–26 from their perspective and is not willing to revise the TDS return.

📌 Clarification required:

Kindly advise on the following:

1. Whether the TDS appearing in FY 2025–26 can be claimed in FY 2026–27 return when income is offered.

2. If yes, what is the correct method of claiming such TDS (e.g., reconciliation, adjustment, or CPC processing).

3. Whether any disclosure/note is required in ITR regarding this mismatch.

4. Possible risk of scrutiny or notice due to mismatch between 26AS and income FY.

5. Best practical approach to avoid refund delay or future complications.

We request your guidance on the correct legal and practical treatment of this issue.

Thank you in advance.