Form 71 Corrects Buyer’s TDS Error, Capital Gain Taxed in Transfer Year: ITAT Delhi Allows Full Credit

Abdul Rahman Asad Vs DCIT (ITAT Delhi)

Form 71 Overrides Buyer’s Wrong-Year TDS Filing—Capital Gain Taxable Only in Year of Transfer- ITAT Delhi Grants Full TDS Credit:

In this appeal, Assessee, a Non-Resident, sold an immovable property in September 2021 & declared the capital gain in AY 2022-23, claiming TDS credit of ₹20,99,240 deducted by the buyer. CPC granted only ₹60,872, as the buyer erroneously filed the TDS return in the following year (AY 2023-24), causing the TDS to appear in Form 26AS of AY 2023-24 instead of AY 2022-23.

CIT(A

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