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Quick Summary
Form 71 enable taxpayers in correcting errors in tax deduction at source (TDS). This form is also applicable when TDS has been deducted but the related income is offered in a later year. TDS Claim Rules TDS Claim Under Section 199 with Rule 37BA of Income Tax law states that: TDS c
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FAQ :
Form 71 is used by taxpayers to correct errors in Tax Deducted at Source (TDS) claims or when the income related to TDS is declared in a different tax year than when the TDS was deducted.
TDS credit can only be claimed in the financial year when the related income is declared and offered for taxation, as per Section 199 and Rule 37BA of the Income Tax law.
If TDS is deducted in one financial year but the income is taxed in a subsequent year, Form 71 allows you to claim the TDS credit in the later year when the income is billed and offered to tax.
If income is taxed in one financial year and TDS is deducted in a later year, you can use Form 71 to claim the TDS credit in the year the income is shown. This is facilitated by Section 155(20) introduced by the Finance Act 2023.
Form 71 must be submitted within two years from the end of the financial year in which the TDS was deducted.
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