CBDT (Central Board of Direct Taxes) notified Form 71 on August 30, 2023, to enable taxpayers to claim TDS credit for income that has been declared in their income tax returns (ITRs) for a previous assessment year, but the tax was deducted at source (TDS) in a subsequent financial year.
The Finance Act of 2023 introduced a new sub-section (20) to Section 155 of the Income Tax Act, 1961, which provides for this facility. This new provision came into effect from October 1, 2023.
To claim TDS credit under this provision, the taxpayer must submit Form 71 to the tax authorities. The form can be downloaded from the website of the Income Tax Department.
The following information must be mentioned in Form 71
- The taxpayer's name, PAN, and address
- The assessment year in which the income was declared in the ITR
- The financial year in which the TDS was deducted
- The amount of TDS deducted
- The reason for claiming TDS credit
The form must be signed by the taxpayer and submitted to the tax authorities along with a copy of the ITR in which the income was declared.
The tax authorities will then verify the information provided in the form and allow the TDS credit, if it is valid.
The introduction of Form 71 is a welcome move by the government as it will help taxpayers to claim TDS credit for income that has been declared in their ITRs, even if the TDS was deducted in a subsequent financial year. This will help taxpayers to save money on their taxes.
Here are some of the key benefits of Form 71
- It allows taxpayers to claim TDS credit for income that has been declared in their ITRs, even if the TDS was deducted in a subsequent financial year.
- It saves taxpayers the hassle of approaching the tax deductor and requesting them to revise their TDS return.
- It is a simple and easy-to-use form that can be downloaded from the website of the Income Tax Department.
Click here to download the official copy of the notification
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