TDS on Property Sale Error? Form 71 Ensures Credit in Correct Year

• Buyer's TDS deposit errors (wrong year/PAN) on property sale can hinder seller's tax credit.
• Form 71, introduced by CBDT, allows transferring TDS credit to the correct assessment year where income was declared.
• Taxpayers who paid tax on income but had TDS deposited in a subsequent year should file Form 71.
• Form 71 must be filed within two years from the financial year of TDS deduction.
• ITAT Delhi ruled that sellers declaring income in the correct year should receive TDS credit in that year, irrespective of buyer's deposit error.