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
- 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?
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