Income Tax Update: A significant change as of October 1, 2023, is set to benefit taxpayers subjected to annual TDS deductions. In case of any TDS credit discrepancies, you will now have the opportunity to rectify them. The Central Board of Direct Taxes (CBDT) introduced the Form 71 in August for such applications related to TDS credits.
More information on the new income tax update
Suppose your TDS has been deducted in an incorrect year, meaning you reported income in a different year, and the tax department deducted TDS in another year. In such cases, you can seek a refund by adjusting the year using this form, thanks to amendments made in the Income Tax Act, 1962.
Please note that this form permits updates for the preceding two years exclusively and is digitally accessible. To submit it, you’ll require either a digital signature certificate or an electronic verification code. Alternatively, you can download the form for manual completion.
How to submit this new form?
To obtain Form 71, visit the Income Tax Department’s e-filing portal at https://www.incometax.gov.in/.
Within the form, you’ll need to provide the following details:
- Taxpayer’s name
- PAN (Permanent Account Number)
- Address
- The year in which the income was declared
- The year in which TDS was deducted
- The total amount of TDS deducted
- A description of why you are making the TDS claim.
After completing Form 71, you must sign and submit it, much like the process of verifying your Income Tax Return (ITR). To verify this form, you can use either a Digital Signature Certificate or an Electronic Verification Code (EVC). If your claim is substantiated, you will receive the refund accordingly.
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