TDS of that particular year is to be adjusted for that years income tax liability only. Eg for FY 2009-2010 TDS is Rs. 10000 and tax liability is Rs. 15000 so you can adjust liability only to the extent of Rs. 10000 and pay Rs. 5000. Accumulated TDS amounting to Rs. XX for the financial year 2010-2011 cannot be set off with the tax liability of financial year 2009-2010.
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