CBDT : Income-tax (Twentieth Amendment) Rules, 2023

Last updated: 01 September 2023

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The Central Board of Direct Taxes has introduced the Income-tax (Twentieth Amendment) Rules, 2023, which will come into effect from 1st October 2023. These rules introduce a new procedure for applying for credit of tax deducted at source (TDS) under section 155(20) of the Income-tax Act. Assessees will need to use Form No. 71 to make these applications.

MINISTRY OF FINANCE
(Department of Revenue)
(Central Board of Direct Taxes)
NOTIFICATION
New Delhi, the 30th August, 2023
INCOME-TAX

G.S.R. 637(E).—In exercise of the powers conferred by sub-section (20) of section 155 read with section 295 of the Income-tax Act, 1961, the Central Board of Direct Taxes, hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:–

1. Short title and commencement.–– (1) These rules may be called the Income-tax (Twentieth Amendment) Rules, 2023.
(2) They shall come into force from the 1st day of October, 2023.

2. In the Income-tax Rules, 1962 (hereinafter referred to as the principal rules), after rule 133, the following rule shall be inserted, namely––

“134. Application under sub-section (20) of section 155 regarding credit of tax deduction at source. —

(1) The application required to be made by the assessee under sub-section (20) of section 155 shall be in Form No. 71.

(2) Form No. 71 shall be furnished to the Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems) or the person authorised by the Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems).

(3) Form No. 71, shall be furnished electronically, —

(i) under digital signature, if the return of income is required to be furnished under digital signature;

(ii) through electronic verification code in a case not covered under clause (i).

For Full notification please refer to the attachment

FAQ :

These are new rules made by the Central Board of Direct Taxes to further amend the Income-tax Rules, 1962, concerning applications for credit of tax deducted at source.

The Income-tax (Twentieth Amendment) Rules, 2023, will come into force from the 1st day of October, 2023.

Rule 134 outlines the application process for assessees seeking credit of tax deducted at source under sub-section (20) of section 155 of the Income-tax Act.

The application for credit of tax deducted at source must be made in Form No. 71.

Form No. 71 must be furnished electronically, either under digital signature (if required for the return of income) or through an electronic verification code.

Form No. 71 should be furnished to the Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems), or an authorised person.