TDS payment on 23/02/2021

[Guest]

Payment was made on 01/12/2020, bill was also received on 30/05/2020, TDS was deducted on 23/02/2021 showing the assessment year 2020-2021.

Our income tax return for the A.Y.2020-21 has been filed and assessment was also made much earlier than this payment.

Now what shall do the strategy of this transaction. Please advise.

[mohammedrafijul hoque]

Dear Mr. Choudhury,

Please note the relevant assessment year of the transaction is 2021-22. Hence Please rectify the the Assessment Year in the challan. After rectification submit/make correction the TDS return for the Q1 (Relevant Date 30/05/2020). There will be no impact on Income Tax Return for the AY 2020-21.

AI Summary

TDS assessment year correction advised; rectify challan and amend TDS return to reflect the correct assessment year. TDS deducted on 23/02/2021 should be allocated to assessment year 2021-22; rectify the Assessment Year in the challan and amend the TDS return for the relevant quarter (Relevant Date 30/05/2020). These corrections are the prescribed compliance steps and will not affect the already filed income tax return for assessment year 2020-21.