Hi,
Before I express my views, you can refer this post I came across relating to this
TDS
…
My opinion:
Any unclaimed TDS relating to previous financial years can be claimed during the current or subsequent years. As it is your money and is yet to adjusted against tax dues or refunded
Normally, there are 2 situations where there can be carry forward of TDS credit to next year.
- Where the tax deductor fails to pay and report the tax deducted within the due date, the same doesn’t get reflected in the form 26AS of that year, making it impossible to claim such TDS.
Happy that you were able to identify the tax credit mismatch.
Many lose their TDS because of this, as they go by the form 26AS and not check if any deductor is yet to file his TDS Return and pay the tax deducted from you to the government in time.
This can happen when we file our income tax returns before the tax deductor files his TDS return
It is sometimes normal in business that the deductor files his TDS returns late.
Eg: We file our ITR on 15th June and the tax deductor file his TDS returns on 30th June.
We can first identify if we have any unclaimed TDS by comparing the FORM 26AS downloaded during the previous year and the new UPDATED form 26AS of the previous year where such late reported TDS are also reflected.
Anyways, for such situations, we can claim or take credit for such TDS by manually filling certain details in the ITR, by adding an extra row at the end of the TDS schedule.
The details that need to be filled mostly relate to TAN of the deductor, assessment year to which such TDS and income relates to etc, basically all the column headers.
You can refer to the 26AS to get the details of TAN etc
(Note: We should have reported the income during the previous year, only the TDS is claimed in the next year)
Second scenario:
- For businesses, there is an option to follow or maintain books on a CASH basis (i.e., they report their income only after collecting the money)
Normally such businesses, carry forward the TDS to next year, if the cash collection is made only in the next year but TDS is deducted on such income in the same year.
How do u carry forward?, u claim less TDS than what is reflected in the return or 26AS as the ITR provides an option to carry forward TDS to next year.
During next year, u don’t have to manually type anything relating to such carried forwarded TDS, as they would be auto populated in the TDS schedule.
So in summary, whenever there is a delay in filing of TDS returns by the TAX deductor, there will be mismatch in the TDS shown in the form 26AS and the actual tax deducted for that year.
Unfortunately, we can claim TDS only after the tax deductor files his TDS returns, so what can we do?, we can claim such TDS next year by following the procedure mentioned above.
Hope this helps.
