Income offered to tax in one year, but TDS shows up in Form 26AS/AIS in a later year — leading to a demand, blocked refund or CPC mismatch. The law has a specific remedy: Form 71 under the Income-tax Act, 1961 and Form 102 under the Income-tax Act, 2025.
A TDS credit mismatch occurs when the timing of income recognition and the timing of TDS deduction fall in different years. You have already disclosed the income, but the corresponding TDS credit does not appear in the same year — so the system may not grant it.
This is a genuine hardship, not tax evasion. The income has been taxed; only the TDS credit is displaced by timing. Left unaddressed, it can trigger a tax demand, a blocked refund, a CPC mismatch, or repeated rectification attempts.
| Particulars | Year |
|---|---|
| Income offered to tax | FY 2024-25 |
| TDS deducted by payer | FY 2025-26 |
| TDS reflected in Form 26AS / AIS | AY 2026-27 |
| Correct year for TDS credit | AY 2025-26 |
This commonly happens with professional fees, government contracts, delayed invoices, property transactions, NRI transactions, salary arrears, or late TDS reporting by the deductor. If the mismatch has already produced a demand, a professional review of your ITR filing, TDS compliance or income tax demand notice response may be needed depending on the status of processing.
Tell us the two years involved. We'll indicate whether Form 71 or Form 102 may apply and the last date to file. Indicative only — not a substitute for professional review.
This checker reflects the general rule (income year vs. TDS-deduction year, and a two-year filing window from the end of the financial year of deduction). Eligibility also depends on the income actually having been offered to tax earlier, correct PAN reporting, and proper reconciliation. Please confirm with a Chartered Accountant before filing.
Both forms serve the same purpose under their respective Acts. Income offered earlier, TDS deducted later — claim the credit in the correct year. Use the tabs to compare.
The Income Tax Department's official Form 71 page describes it as an e-application for claiming TDS credit where income was offered in an earlier return but TDS was deducted and deposited later, linked with section 155(20) and Rule 134.
The Income Tax Department's Form 102 FAQ confirms it is used where income has been included in the return for a tax year but TDS on that income was deducted and paid in a subsequent tax year. The Income Tax Act, 2025 applies from Tax Year 2026-27 onward.
Use Form 71 or Form 102 only when all of the following hold true:
For taxpayers in Delhi NCR, a detailed reconciliation can be reviewed with a tax consultant in Dwarka, especially where the mismatch has already resulted in a tax demand.
Where this mismatch typically arises — and how Form 71 / Form 102 fits.
A consultant raises an invoice in March 2025 and offers the income in FY 2024-25. The client deducts TDS in April 2025. Income is taxed in AY 2025-26, but TDS appears in AY 2026-27. Form 71 may be used to claim credit in AY 2025-26.
Government departments may process bills late. If a contractor recognises income on accrual basis in one year but TDS is deducted in a later year, Form 71 or Form 102 may help align the credit.
A seller may offer capital gains in the year of transfer while the buyer deducts or deposits TDS later. Review this alongside TDS on sale of property and NRI taxation and FEMA implications.
Where salary, allowance, arrears or perquisite income is disclosed in one year but employer TDS is reported later, Form 71 / Form 102 may be relevant — subject to factual matching of income and TDS.
Form 71 / Form 102 must be furnished within two years from the end of the financial year in which TDS was deducted at source, as stated on the Income Tax Department's Form 71 page and the Form 102 FAQ.
| TDS deducted during | Last date to file |
|---|---|
| FY 2025-26 | 31 March 2028 |
| FY 2026-27 | 31 March 2029 |
| FY 2027-28 | 31 March 2030 |
Missing the window can mean permanently losing legitimate TDS credit. If a demand has already been raised, combine the application with a proper income tax demand notice response.
A Form 71 / Form 102 application succeeds on the strength of its reconciliation. Keep the following ready:
Where the mismatch has triggered scrutiny or adjustment, professional support for faceless assessment or tax litigation may be required.
Sign in at the Income Tax e-filing portal (incometax.gov.in) with your credentials.
Choose Form 71 (1961 Act) or Form 102 (2025 Act) depending on the applicable year and law.
Taxpayer details, the relevant assessment year / tax year, income details and TDS particulars.
Confirm the same income was actually offered to tax in the earlier year before claiming credit.
File electronically using Digital Signature or EVC, as applicable. Rule 134 provides for electronic furnishing.
The application is forwarded to the Assessing Officer. Track status and respond to any query promptly.
Share the two years and the situation. A Chartered Accountant from our Dwarka team will review whether Form 71 / Form 102 fits your case and call you back the same working day with clear next steps. No obligation.
Prefer to talk now? Call +91-9818167102 or WhatsApp directly.
Takes ~30 seconds. We reply the same working day.
Walk in for a consultation, or reach us on call, WhatsApp and video. We assist clients across Dwarka, Delhi NCR, Pan-India and NRIs worldwide.
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📞 +91-9818167102 · ✉ alok@skmehta.co.in
Related services that often accompany a TDS credit mismatch:
Form 71 and Form 102 are small forms that solve a big problem. File within time, with proper reconciliation — or let CA Alok Kumar's team handle it end-to-end.
