Income tax information: The Central Board of Direct Taxes (CBDT) has announced adjustments to income tax rules in order to give taxpayers with relief. Salary workers will find it easier to claim credit for TCS collected or TDS withheld. Furthermore, as a result of these modifications, parents will be allowed to claim TCS credit for their kids who are minors. On Thursday, the Finance Ministry announced that the Finance Act of 2024 would modify section 2B of Section 192 of the IT Act of 1961. This involves any TDS or TCS (Tax Collected at Source) in the terms of Chapter XVII B or Chapter XVII-BB for salaried employee tax deductions.
Income Tax Information: Employer will need to provide information
In a notification dated October 15, the CBDT updated the Income Tax Rules 1962 and established Form No. 12BAA, a prescribed report of information required under clause 2B of Section 192 of this Act. Employees must give this data to their employer, who is liable for paying under section 192. The company will withhold TDS from your salary based on the data that you submit.
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Aside from that, a change was made to allow someone other than the person who used the TCS credit for tax paid on an particular expense to claim it. This permits the parent to claim a TCS return when a minor collector’s revenue is coupled with the parent’s. According to a Finance Ministry announcements sub-section 4 of Section 2060 of the Income Tax Act has been amended to permit TCS credit to someone other than the collector.
Taxpayers will receive convenience
This adjustment will allow people to lower their taxable income. The collector who makes the TCS payment must give an acknowledgment to the tax collecting bank or different organization telling them that the TCS should be credited to a different person’s PAN. The analysis must contain the name, address, and PAN of the person receiving TCS, as well as information about the activity for which credit is being awarded.It must also be stated why credit is being granted to such a person.
Income Tax Information: Direct tax collection increased by 182% in ten years
Direct tax collections have increased by 182% over the last decade, exceeding Rs 19.60 lakh crore in fiscal year 2023-24. This information was obtained from the department’s most recent time series data. According to this, corporate taxation collections have more than doubled in the last decade, totaling Rs 9.11 lakh crore in 2023-24. During this time, individual tax collections surged by nearly fourfold to Rs 10.45 lakh crore.
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