Income Tax Notifies Form 71 to enable TDS Credit for Previously Declared Income in ITR

The Central Board of Direct Taxes (CBDT) has notified, form 71, Application under sub-section (20) of section 155 for credit of tax deduction at source (TDS).

As per Section 155(2):

Where any income has been included in the return of income furnished by an assessee under section 139 for any assessment year (herein referred to as the relevant assessment year) and tax on such income has been deducted at source and paid to the credit of the Central Government in accordance with the provisions of Chapter XVII-B in a subsequent financial year, the Assessing Officer shall, on an application made by the assessee in such form, as may be prescribed, within a period of two years from the end of the financial year in which such tax was deducted at source, amend the order of assessment or any intimation allowing credit of such tax deducted at source in the relevant assessment year, and the provisions of section 154 shall, so far as may be, apply thereto and the period of four years specified in sub-section (7) of that section shall be reckoned from the end of the financial year in which such tax has been deducted:

Provided that the credit of such tax deducted at source shall not be allowed in any other assessment year.

When can we use Form 71?

For Example, Mr. A had FD interest in FY 2022-23 (AY 2023-24). The bank has deducted the TDS on the same in FY 2023-24 (AY 2024-25). Now Income is Taxable in AY 2023-24 and TDS credit is reflected in AY 2024-25.

To resolve this issue, Mr. A can File Form No. 71.

Time Limit for Filing Form 71:

The Form has to be filed within a period of two years from the end of the financial year in which such tax was deducted at source.

In the Above Example, the Form should be filed up to 31st March 2026.

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