Clarification on Form 71

This query is : Resolved

Neha (Querist)
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27 March 2024 Please guide if I have to file Form 71 where income is recorded as per accrual basis in FY 2021-22
and TDS deducted appears in 26AS of FY 2022-23 till when can Form 71 be filed.
Thanks in advance.

Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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06 July 2024 Form 71 under the Income Tax Act, 1961, is used to claim credit for tax deducted at source (TDS) where income is offered for taxation on an accrual basis. Here’s a guide on filing Form 71 in your scenario:

1. **Accrual Basis Income and TDS Deduction**:
- **Accrual Basis Income**: If your income for FY 2021-22 was recorded on an accrual basis (i.e., income was recognized when it was earned rather than when it was received), you need to file Form 71 to claim TDS credit against this income.
- **TDS Deducted**: The TDS related to this income should reflect in your Form 26AS for FY 2022-23.

2. **Filing Timeline**:
- **Due Date**: Form 71 can typically be filed within one year from the end of the financial year in which the income is assessable. For income assessable in FY 2021-22 (which ends on March 31, 2022), you have until March 31, 2023, to file Form 71.
- **Considerations**: Ensure that the TDS details are correctly reflected in your Form 26AS for FY 2022-23 before filing Form 71. It’s crucial because Form 71 relies on the TDS entries visible in Form 26AS.

3. **Procedure for Filing Form 71**:
- **Access**: Form 71 can be filed online through the income tax e-filing portal.
- **Details Required**: You will need details such as TAN of the deductor, TDS amount, and other relevant information as per your Form 26AS.
- **Verification**: After filing, ensure you verify the form using a digital signature or by generating an electronic verification code (EVC).

4. **Documentation**:
- Keep copies of all supporting documents, including Form 26AS, TDS certificates, and any other relevant correspondence, as these may be required for verification or audit purposes.

5. **Professional Advice**:
- If you are unsure about any aspect of filing Form 71 or need clarification specific to your case, consider consulting with a tax professional or accountant who can provide personalized guidance based on your financial situation and tax records.

By adhering to these guidelines, you can effectively file Form 71 and claim the TDS credit against the accrual basis income for FY 2021-22 within the stipulated timeline.