I made a Fixed Deposit of Rs. 1Lakh at a contracted @7% for a tenure of 3 years on 1April 2021 in a private bank. However due to some reason i prematurely closed the Fixed Deposit on 3April 2022. Being premature closure,the interest rate paid by the bank was reduced to 5% for the FD deposit period viz. 1April 2021 to 3April2022. But the Bank had already deducted TDS each quarter of FY 2021 starting April2021 till 31March2022 on the interest paid @ 7% and the same had been deposited to Income Tax Department and also being duly reflected in the 26AS against my PAN for all these 4 Quarters of FY 2021_2022 (AY2022-2023). Now the issue is as actually my actual income is less than the income reflected in 26AS, i am entitled to pay less income tax and so claim partial refund of TDS reflected in 26AS. Please advise how to treat this TDS in my income tax return filing for the AY 2022-2023?

Ans: I'm sorry to hear about the issue you're facing with the tax authority. Here are some steps you can take to resolve the issue:

Verify the TDS credit: Check if the TDS credit shown in your Form 26AS matches the TDS amount shown in your Form 16/16A or any other TDS certificate issued to you by the deductor. If there is any discrepancy, you may need to contact the deductor and get the correct TDS certificate.

Raise a grievance: If you have already verified the TDS credit and found it to be correct, you can raise a grievance with the tax authority. You can do this online by logging into the e-filing portal of the Income Tax Department and submitting a grievance under the 'e-Nivaran' tab. Provide all the relevant details and documents to support your claim.

Follow up: After raising the grievance, you may need to follow up with the tax authority to ensure that your issue is being addressed. You can track the status of your grievance online using the grievance ID provided to you.

Seems you have followed all the above steps. In my opinion, instead of filling grievance, you may have opted for rectification under provisions of section 154 of the Income tax Act, 1961.
You may visit, "Work-listing" or "e-proceedings" or "Under respond to outstanding demand", which will navigate you to another page, where in you will be taken to the "Agree/ disagree with the demand" . You may disagree in full or in partial and there would be number of options that would be auto populated , from which you may select , "Rectification", basis rectification filled as explained above. In rectification, you may have to select the option, TDS mismatch, which will navigate you to the page which will display, difference if any between TDS claimed and TDS allowed by the Central Processing.

I hope the above step may resolve your issue.

Ans: There is section in the ITR for claiming TDS of previous years. You will need to mention year wise break up in ITR for the current year.

Please take your CAs advice before moving ahead.