How to Submit Form 71 ?

Income is usually shown in one financial year and TDS in the next. This case is not covered by income tax in general. Check more on Form 71 to claim such TDS.

Things to be taken care before 31st Dec 2023

The Finance Act 2023 has introduced a new sub section (20) to section 155 of the Income Tax Act 1961 to handle these types of situations. This which will facilitate the taxpayer to claim the TDS deducted in subsequent financial year in the year in which the income is shown. As per this amendment, taxpayers are requested to submit Form 71.

This document covers

Applicability
Benefits of Form 71
Example for benefits of Form 71
Required details for filing Form 71
Time limit to file form 71
How to file Form 71?

1. Applicability

This provision is applicable from 01st Oct 2023

2. Benefits of Form 71

Taxpayers can claim the TDS in the same year in which income was shown even though the TDS is not reflecting in Form 26AS for same year.
It removes the hardship faced by taxpayers in resolving the TDS issues. Taxpayers are not required to approach the deductor’s and follow up with them regarding TDS revision and correction.
It is simple and easy form which can be filed online in income tax portal.

3. Example for benefits of Form 71

Mr Ram is having interest income of Rs 5 lakhs for FY 2022-23. However, the bank has deducted TDS of Rs 50,000 in FY 2023-24 instead of FY 2022-23. With the help of Form 71, Mr Ram can claim the TDS of Rs 50,000 In FY 2022-23 by submitting Form 71

4. Required details for filing Form 71

The following details are required for filing Form 71

Name, PAN, Address and Residential status of applicant
Assessment Year in which the income was included
Financial year in which the TDS was deducted
Date on which Income Tax Return is filed.
Total Income of the relevant Assessment year
Total amount of specified income included in Income Tax Return
Nature of specified income and Rate at which TDS deducted
Amount of TDS, Date of Deduction of Tax and date of payment to Govt by deductor
Name, TAN and PAN of Deductor

5. Time limit to file form 71

The time limit to file Form 71 is within 2 years of the financial year in which the TDS was deducted.

6. How to file Form 71?

Login to https://eportal.incometax.gov.in/iec/
Go to E File >> Income Tax Forms >> File Income Tax Forms
Go to "Persons not dependent on any source of income" tab and Click on File now on "Procedure for Assessment" (Form 71)
Select the Relevant Assessment year for which Form 71 is being filed
Click on Lets get started and there will be 2 tabs called "Basic Information and Details of Computation of Income" and Attachments and Verification
Click on Basic Information and Details of Computation of Income and enter the details required.
Upload the supporting documents and click on Save.
Do the E Verification through Aadhaar OTP or Bank EVC or Net Banking