Central Board of Direct Taxes (CBDT) has issued Notification No. 73/2023 to insert new rule for allowing assessees to make an application for the credit of Tax Deducted at Source (TDS) in the relevant assessment year under sub section 20 of Section 155* of Income Tax Act, 1961.
Key highlights of the Notifications are:
- In cases where income has been reported in an income tax return for a particular assessment year, but the tax was deducted at source (TDS) in a subsequent financial year then application for crediting of TDS in the relevant assessment year is required to be done in Form No. 71.
- Form is required to be furnished to the Principal Director General of Income-tax or the Director General of Income-tax or the person authorised by them.
- Form can be furnished in two ways-
- Electronically, using Digital Signature
- Through Electronic Voting system in case not above
The said Notification shall be effective from 1st Day of October, 2023.
*Section 155(20) of Income Tax Act,1961-
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.
Source: Central Board of Direct Taxes
