⚡Quick answer -
Yes—but only if:
• All the past invoices belong to the same Financial Year (April – March) as the current payment, and
• No TDS was deducted earlier on those invoices. Otherwise, TDS deduction is not allowed on the current payment.
When should I use this guide?
Refer to this FAQ whenever a client asks to adjust TDS for earlier invoices while paying a new invoice, so you can confirm whether the request meets the Financial-Year rule.
Policy overview
A client can deduct TDS on past invoices while making a current payment, but only if the invoices belong to the same Financial Year (FY) in which they were raised, and no TDS was deducted on such invoices in the past.
Worked example
If a client pays in December 2025 and wishes to deduct TDS for earlier invoices:
• Invoices from April 2025 and July 2025 fall in FY 2025-26 → deduction allowed.
• Invoices from March 2025 or October 2024 fall in FY 2024-25 → deduction not allowed.
When deduction is rejected
TDS deduction against the current payment is rejected when any past invoice:
- Falls outside the current Financial Year, or
- Already had TDS deducted earlier.