Claim the credit according to tax assessability
For FY 2025–26 and AY 2026–27, the return remains under the Income-tax Act, 1961. Under section 199 and Rule 37BA(3) of the Income-tax Rules, 1962, TDS deducted and paid to the Central Government ordinarily follows the assessment year in which the income is assessable. When the income is assessable over multiple years, allocate the TDS in the same proportions. The date on a certificate or the year a deduction appears in the annual tax statement does not alone determine the whole claim.
Read the applicable text: CBDT Notification 28/2009: Rule 37BA(3) under section 199 CBDT Notification 49/2026: notified AY 2026–27 ITR-6 CBDT Notification 61/2026: ITR-6 corrigendum Official ITR-6 JSON schema Official ITR-6 validation rules Income Tax Department: current ITR utilities Finance Act, 2026: section 139 amendment CBDT Circular 7/2026: filing extension.
Prepare one tax-assessability working per receipt
Identify the contract, tax-recognition basis, income assessed or offered in each relevant period, and total income to which the deduction relates. Reconcile the certificate, Form 26AS, deductor identity and withholding deposit evidence to the same income stream. Where book revenue and tax assessability differ, use the supported tax analysis. The simplified calculation is attributable TDS multiplied by current assessable income divided by total assessable income linked to that deduction. Apply it separately to each stream and make any whole-rupee rounding residual traceable.
Separate year allocation from other-person credit
This guide covers a company claiming its own credit on income spread across years. Rule 37BA(2) deals separately with income assessable in another person's hands; do not shift credit merely because the company and another entity belong to the same group. Section 194N credit is an exception to the ordinary income-linked treatment and is excluded from the examples. Do not carry an amount forward simply because it was missed in an earlier return for a year when all the income was already assessable; review the available correction route for that year.
Map self-credit to the notified form
In AY 2026–27 ITR-6 tax payments block B, capture the deduction year and earlier unclaimed TDS in columns (5) and (6) where applicable; current FY TDS deducted in own hands is column (7). The amount claimed in own hands is column (9), corresponding gross receipt and income head are columns (11) and (12), and credit carried forward is column (13). The JSON schema identifies the non-salary Form 16A schedule as ScheduleTDS2 with TDSOthThanSalaryDtls. CBDT validation rule 789 separates brought-forward and current FY amounts into different rows. Rule 798 checks column (13): column (6) plus columns (7) and (8), less columns (9) and (10). For the company’s own-credit examples here, columns (8) and (10) do not contribute. Check the sum claimed in Part B-TTI item 10b, not the full credit shown in the deduction certificate.
Use the correct filing year and retain a forward trail
The department's 6 November 2026 listings show offline ITR-6 version 1.0.2 released on 4 November, with separate schema and validations. Circular 7/2026 moved the serial number 2 return deadline from 31 October to 21 November 2026 and that class's specified audit-report deadline from 30 September to 21 October 2026. The statutory section 92E class return date remains 30 November 2026 under the applicable provision and is not covered by that circular. Preserve deduction vintage, allocation and prior claims for future periods; verify the law and return applicable to a later tax year before using the remaining balance.
Six worked illustrations
All facts and amounts are fictional. Calculations illustrate the stated assumptions, not a predetermined legal outcome.
Illustrative example 1: Two income periods from one deduction
₹1,20,000 TDS relates to ₹12 lakh assessable income. Assume ₹3 lakh is assessable in AY 2026–27 and the remaining ₹9 lakh in a later period. The current allocation is ₹30,000 and ₹90,000 is tracked for the later period, subject to its applicable law.
Illustrative example 2: Current deduction and earlier unclaimed amount
A prior deduction has ₹40,000 unclaimed, of which ₹25,000 now qualifies. A separate current deduction of ₹70,000 supports a ₹30,000 current claim. Use separate rows: total claim ₹55,000, remaining earlier amount ₹15,000 and remaining current amount ₹40,000, for a total remaining ₹55,000.
Illustrative example 3: Earlier tax statement already used in part
A ₹90,000 deduction on ₹9 lakh was previously claimed to the extent of ₹20,000 on ₹2 lakh assessable then. ₹4 lakh is now assessable. Opening unclaimed is ₹70,000, current claim ₹40,000, and closing unclaimed ₹30,000.
Illustrative example 4: One deductible amount across three income slices
An ₹84,000 deduction relates to ₹14 lakh with assessable slices of ₹2 lakh, ₹5 lakh and ₹7 lakh. The proportions allocate ₹12,000, ₹30,000 and ₹42,000 respectively. If the middle slice is the current year, the current claim is ₹30,000.
Illustrative example 5: Rounding with a control total
Assume ₹1,001 TDS is allocated equally across three assessable amounts and whole rupees are required. Each exact share is ₹333⅔. One illustrative rounding convention allocates ₹334, ₹334 and ₹333; the sum remains ₹1,001. This example does not prescribe a statutory rounding rule. Reconcile the final residual to the prior claims.
Illustrative example 6: Prefill does not replace a timing check
A current statement displays ₹48,000 TDS on ₹4,80,000 income, with only ₹1,20,000 assessable this year. Assuming all credit conditions hold, claim ₹12,000 now and track ₹36,000. A full current claim would overstate eligible credit by ₹36,000 on these facts.
Ten-step verification table
| Step | Action | Evidence |
|---|---|---|
| 1 | Confirm the law and return year | AY and FY evidence |
| 2 | Identify the source income and deductor | Contract, invoice and certificate |
| 3 | Match the tax deducted and paid | Form 26AS and deductor records |
| 4 | Prove tax assessability by period | Tax computation and supporting basis |
| 5 | Allocate each deduction independently | Income ratio and rounded amounts |
| 6 | Verify credit already claimed | Filed returns and processing records |
| 7 | Separate opening from current deductions | Distinct rows by vintage |
| 8 | Map gross receipt and income head | Applicable income schedule and TDS working |
| 9 | Check current claim and closing credit | Column (13) and Part B-TTI item 10b reconciliation |
| 10 | Retain a future-period evidence file | Deduction vintage, supporting records and filing acknowledgement |
Sixteen practitioner FAQs
1. Does every amount in Form 26AS belong in the current claim?
No. Apply the assessability rule and applicable exceptions.
2. Can I allocate on a cash collection ratio?
Use the proportion in which the linked income is assessable, which may differ from collections.
3. Does this affect the company's outward TDS payments?
No. This guide addresses credit as a deductee.
4. Does accounting deferral determine the tax result?
Review the applicable tax-recognition rules independently.
5. Can the entire deduction be claimed if the income is assessable this year?
Ordinarily yes if the full credit belongs to the company, was properly deducted and paid, and all applicable conditions are met.
6. What if an earlier-year deduction first relates to current assessable income?
Support the earlier deduction and available credit and report the eligible brought-forward amount separately.
7. Should current-year and earlier unclaimed TDS share one row?
No. The AY 2026–27 validation guidance calls for separate rows.
8. What should be carried in column (13)?
The supported balance after current claims: add columns (6), (7) and (8), then subtract columns (9) and (10). Reconcile it to the underlying deduction and tax assessability working.
9. Does a zero current allocation mean zero deduction occurred?
No. Reconcile the original deduction and preserve the relevant future-period evidence.
10. How do we handle rounding?
Keep the underlying proportions and a documented residual check so lifetime claims do not exceed the deduction.
11. Can we claim a deduction belonging to another group member?
Not on group relationship alone. Review Rule 37BA(2), reporting and entitlement separately.
12. Does the same principle apply automatically to section 194N?
No. It has a separate credit rule and is outside this guide.
13. What if the deductor's report is under the wrong PAN?
Reconcile the facts and seek a supported deductor correction where needed.
14. Can an overlooked earlier claim simply be used this year?
No. Identify the year of assessability and determine the supported correction route.
15. What if the earlier year has a processing adjustment?
Reconcile the return, intimation and subsequent orders before fixing the opening balance.
16. Which total goes to Part B-TTI item 10b?
The supported current TDS claims, rather than the amounts deducted but carried forward.
Official sources
CBDT Notification 28/2009: Rule 37BA(3) under section 199 CBDT Notification 49/2026: notified AY 2026–27 ITR-6 CBDT Notification 61/2026: ITR-6 corrigendum Official ITR-6 JSON schema Official ITR-6 validation rules Income Tax Department: current ITR utilities Finance Act, 2026: section 139 amendment CBDT Circular 7/2026: filing extension
Income Tax Department: consolidated Rule 37BA, including the section 194N exception