Property seller wins Rs 21 lakh TDS credit battle at ITAT Delhi. In a significant ruling, the tribunal allowed a non-resident individual to claim TDS credit even though the buyer mistakenly deposited it in the wrong financial year. The seller had sold property for Rs 94 lakh in FY 2021-22 but reported capital gains in AY 2022-23. The buyer deducted 20% TDS of Rs 20.99 lakh but deposited it in FY 2022-23 instead of the correct year. The Income Tax Department initially denied the credit, but ITAT Delhi ruled that TDS credit must be allowed based on the year of transfer and Form 71 filing, not the deposit year. This decision provides crucial relief for property sellers facing similar situations and clarifies important tax compliance rules.
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