set Format="dd/MM/yyyy" attribute for calendar extender and change ur textchanged event as follows
protected void txtdateofissue_OnTextChanged(object sender, EventArgs e)
{
string[] str = txtdateofissue.Text.Trim().Split('/');
System.DateTime dt = new System.DateTime(int.Parse(str[2]), int.Parse(str[1]), int.Parse(str[0]));
dt = dt.AddDays(-1).AddYears(1);
txtdateofexpiry.Text = dt.ToShortDateString();
}