TDS deducted in wrong FY? New income tax form to help you get it corrected Oct 1 onwards

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The Central Board of Direct Taxes (CBDT) has notified Form 71 which a taxpayer can use to correct the wrong Tax Deducted at Source (TDS) credit for any financial year..

Since the due income has already been declared in the ITR by the individual in earlier years, but TDS is only being deducted in the financial year when actual payment is being made, says chartered accountant (CA) Satbir Singh, founder, Taxheal.com, a Chandigarh-based CA firm...

It becomes difficult for the taxpayer to claim TDS credit in the FY in which tax is deducted since income is not declared in ITR in that year, says Dr Suresh Surana, Founder, RSM India, a tax and business consulting group...

For instance, fee on account of professional services rendered, of Rs 1 lakh has been declared in the ITR for FY 2022-23 (AY 2023-24), however, credit of TDS on such income could not be claimed in the said ITR , since the same was deducted and deposited by the service recipient in the subsequent year on receipt of invoice and, therefore, was not reflecting in the tax credit statement (Form 26AS) of the Taxpayer," says Sanjoli Maheshwari, executive director, Nangia Andersen India, a business consultancy company...

"Form 71 and its related tax laws/provisions can be taken advantage of by a Taxpayer even in situations wherein revised/belated/updated return is filed by the Taxpayers, however, the corresponding TDS claim not been considered due to the same reflecting in Tax credit statement (Form 26AS) of subsequent financial year," says Maheshwari...

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