Unclaimed TDS for the F.Y 2021-2022

Hi Akash,

Here’s a breakdown of your query regarding unclaimed TDS for FY 2021-22:

Situation:

• You deducted and deposited TDS after the due date (paid on 15-Oct-2022, but due was 30-Sep-2022).

• Your client already filed their ITR before your TDS payment.

• Now client wants to know if they can claim this TDS in their current/future year’s ITR.

Key points:

1. TDS credit is available only when reflected in Form 26AS or TRACES:
   Since your TDS was deposited late, it may not appear in your client’s Form 26AS for FY 2021-22 or AY 2022-23 at the time of filing.

2. Claiming TDS after due date:
   The client can claim the credit of TDS only in the year in which it is actually reflected in their Form 26AS.

3. Can TDS be claimed in the next year’s ITR?

   • Yes, the client can claim the TDS credit in the next financial year’s return (e.g., FY 2022-23 or AY 2023-24) when it appears in Form 26AS.

   • However, the client will have to disclose the income on which this TDS pertains again in that year to match with the TDS credit.

4. CPC processing:

   • CPC will process the claim based on Form 26AS and income reported.

   • If the client claims TDS in a different year than the income was earned, it may trigger an inconsistency or demand notice, requiring clarification.

5. Practical solution:

   • You, as the deductor, should ideally inform the client about the delay.

   • Client should consider filing a revised return (if possible) for the relevant year (if time permits).

   • Otherwise, client can claim the TDS in the year it appears in their Form 26AS, but must include the income again to match.

Summary:

Advice:
Inform the client about the mismatch and the possible need to either revise return or claim TDS in the later year with proper disclosure.