Clarification on time allowed to file Form 71 of Income Tax Act

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Neha (Querist)
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28 March 2024 Please guide if I have to file Income Tax Form 71 in a case where income is recorded in FY 2021-22
and TDS deducted on above income 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 Income Tax is used for rectification of TDS details in case there is a mismatch or discrepancy between the TDS reported by the deductor and what appears in your Form 26AS. Here’s how you can approach filing Form 71 in your scenario:

1. **Time Limit for Filing Form 71**:
- Form 71 can be filed to rectify TDS details that appear in your Form 26AS but do not match with what has been reported by the deductor.
- As per the Income Tax rules, you can file Form 71 within two years from the end of the financial year in which the deductee (you) became aware of the discrepancy. This is typically construed as the financial year in which you file your Income Tax Return (ITR).

2. **Specific Scenario**:
- If income pertaining to FY 2021-22 was recorded and TDS was deducted on this income, but the TDS details are reflecting in FY 2022-23 Form 26AS, you should file Form 71 to rectify this discrepancy.
- You have a window of two years from the end of FY 2022-23 to file Form 71, provided you became aware of the discrepancy during this period.

3. **Procedure to File Form 71**:
- Log in to your Income Tax e-filing account.
- Navigate to the "e-File" tab and select "Rectification" from the drop-down menu.
- Choose "Rectification request under section 154" and select the relevant assessment year (AY).
- Fill in the necessary details and provide explanations for the rectification.
- Upload supporting documents if required (such as communication with the deductor regarding TDS discrepancies).
- Submit the form electronically.

4. **Documentation**:
- Ensure you have supporting documents like TDS certificates (Form 16/16A), communications with the deductor regarding TDS details, and any other relevant proofs.

5. **Acknowledgement and Follow-up**:
- Upon submission, you will receive an acknowledgement with a unique transaction ID.
- The Income Tax Department will process your rectification request, and you can track its status online.

**Conclusion**:
To summarize, you should file Form 71 to rectify the TDS details appearing in FY 2022-23 Form 26AS for income recorded in FY 2021-22. Ensure to file within the two-year window from the end of FY 2022-23 or when you became aware of the discrepancy, whichever is later. Always keep all relevant documents handy to support your rectification request.