Form 26AS TDS Credit in Wrong Assessment Year: Deductor Correction and Return Treatment
By Ravi Sisodia · Reviewed by CA Divyanshu Sengar · Updated 5 October 2026
2-minute summary
- When TDS appears in the wrong assessment/tax year, first identify whether the underlying credit/payment arose before or after 1 April 2026. The Income Tax Department’s TDS transition FAQ states that the governing Act follows the earlier of credit or payment: periods up to 31 March 2026 remain under the 1961 Act, while events from 1 April 2026 fall under the 2025 Act.
- A taxpayer cannot safely solve the mismatch by claiming credit in whatever year the tax happens to appear. The Department’s Tax Credit Mismatch guidance directs the taxpayer to inform the deductor and have the TDS statement corrected where the mismatch originates with the deductor. Processed-return mismatches may also require the appropriate rectification/revised-return route.
- Keep three dates separate: income recognition/assessability, date of deduction, and date of deposit/reporting. Transition errors are especially likely because AY 2026-27 legacy AIS coexists with Tax Year 2026-27 Form 168, and old/new section numbers can cause mapping errors in TDS statements.
Current position
Control and evidence map
| # | Control / evidence requirement |
|---|---|
| 1 | Trace the payment/credit date that created the TDS obligation and determine the governing Act. |
| 2 | Match Form 26AS/AIS or Form 168 entries to the deductor certificate, ledger and bank receipt. |
| 3 | Ask the deductor to correct the year/section/challan allocation in the TDS statement where wrong. |
| 4 | After source correction, recheck the tax-credit statement before filing or rectifying the return. |
| 5 | Use revised return/rectification only through the route applicable to that year and do not claim credit unsupported by the statement. |
Worked example
Interest relating to FY 2025-26 is credited on 31 March 2026 but paid in April. The TDS compliance FAQ says the old Act governs because credit occurred by 31 March. If the deductor mistakenly reports it as a Tax Year 2026-27 item, the taxpayer should seek a deductor correction rather than claiming the credit in the new-Act year merely because the payment happened in April.
Common mistakes
- Using deposit date instead of the TDS triggering event to choose the Act/year.
- Claiming credit in both the legacy AY and the new Tax Year.
- Skipping deductor correction and relying only on taxpayer-side rectification.
- Ignoring old/new section mapping in the 2026 transition.
Frequently asked questions
Who corrects a deductor-originated TDS mismatch?
The Department advises informing the employer/deductor so it can file the necessary correction statement.
Can I claim credit not visible in the tax-credit statement?
The portal guidance restricts processing to available/matched credit; resolve the source mismatch first.
Does April 2026 payment automatically make it new-Act TDS?
No. The earlier of credit or payment controls the transition analysis.
Official sources
- Income Tax Department - TDS Compliance FAQs - transition to Income Tax Act, 2025 (Current FAQ; 2026)
- Income Tax Department - Tax Credit Mismatch - FAQs and correction workflow (Tax Credit Mismatch service; current)
- Income Tax Department - Income Tax Returns FAQs - 1961 Act / 2025 Act transition (Current FAQ; 2026)
Disclaimer
Educational and professional reference only; confirm the current law, rates and the facts of your case before relying on this page.