Tax is deducted at source at the time of payment or at the time of credit, whichever occurs earlier, which brings in a very basic practical issue.  Now carry forward TDS deducted to the next year – Income Tax Return Filing for FY 2013-14, with this amendment. Suppose a situation, wherein you receive advance payment or you have a contract which would be serviced in 10 months, and you get full payment in the month of March ( remember financial ends in March). Till last year, you had to claim the full TDS in the relevant year, in which the TDS got deducted, and claim refunds. And there may be situation, wherein you would have to pay taxes in next year. Thankfully, the government has understood this issue, and brought in a provision in the Online Income Tax Return Filing form, wherein you can actually carry-forward TDS and claim it in the next year. Now carry forward TDS deducted to the next year – Income Tax Return Filing for FY 2013-14 .  Read on .. Matching Concept: Unclaimed TDS/TCS of earlier year can be claimed in current year [ITR 1, 2, 3, 4, 5, 6, 7] Certain provisions of TDS (including TCS) require deduction of tax at source at the time of payment or at the time of credit, whichever occurs earlier. Resulting advance payments are also subjected to TDS. Old ITR form did not have any mechanism to carry forward the excess TDS, thus, taxpayers were required to show the entire TDS as a deduction and claim refund of excess TDS. To fix the issues, the Schedule TDS/TCS introduces two new columns:

1. Unclaimed TDS/TCS brought forward
2. Financial Year in which deducted/collected
3. Amount brought forward
4. TDS/TCS being claimed this year from amount brought forward or from TDS/TCS of current financial year.

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