The Central Board of Direct Taxes (CBDT) has introduced a new electronic form called Form 71 to help people correct errors in tax deduction at source (TDS). This change is part of the Income Tax Rules, 1962 and will come into effect on October 1, 2023.

Form 71 is important because it solves a common problem where taxes are withheld one year but income is reported in another year. Many people report their income when it is owed to them, not when it is actually in their bank account. This results in a difference in TDS credit. Form 71 simplifies the error correction process, making it easier for individuals to seek help from tax authorities.

Here’s what you need to know about Form 71:

New Rule 134:

A new rule, Rule 134, has been added after Rule 133, which deals with applications relating to TDS credit. Form No. 71 is now required for submitting such requests.

How to submit Form 71:

1. Visit the Income Tax Department’s e-filing portal at https://www.incometax.gov.in/ and download the form OR you can fill the form online when it is readily available.
2. Fill in your details including name, PAN, address, tax year (year income is declared in your tax return), tax year (year TDS is deducted), TDS amount deducted and reason for claiming credit TDS.
3. Sign the form and submit it for verification. You can use an Electronic Verification Code (EVC) or Digital Signature Certificate (DSC).