In its notification, the Finance Ministry has said that subsection 2B of section 192 of the IT Act 1961 has been amended under the Finance Act 2024.
Read More:-CBDT Extends Due Date For Corporates Furnishing ITR For AY 2024-25
New Delhi: In a major relief to crores of taxpayers, the Central Board of Direct Taxes (CBDT) has notified some changes in the rules related to income tax. After the introduction of these new rules, it will be easier for salaried employees to claim credit for TCS collected or TDS deducted. The parents will also be able to claim TCS credit for minors. In its notification, the Finance Ministry has said that subsection 2B of section 192 of the IT Act 1961 has been amended under the Finance Act 2024. This will include any TDS or TCS (Tax Collected at Source) in Chapter XVII B or Chapter XVII-BB for tax deduction in the case of salaried employees.
Also Read– How can individuals minimise the tax burden associated with intergenerational wealth transfer?
Employer will have to give information
CBDT, in its notification issued on October 15, amended Income Tax Rules 1962 and introduced Form No. 12BAA, which will be a prescribed statement of information required under subsection 2B of section 192 of this Act. Under section 192, the employees will have to give this information to their employer, who is responsible for payments. The employer will deduct TDS on salary based on the information provided.
Additionally, a change has been introduced to allow someone other than the person who incurred the Tax Collected at Source (TCS) on a specific expense to claim the credit. This enables, for example, a parent to claim TCS credit when it pertains to a minor whose income is combined with the parent’s.
The notification from the Finance Department further adds that the sub-section 4 of section 206C of the Income Tax Act has been amended to allow TCS credit to be claimed by a person other than the collector.
Read More:- ITR filing: Return filing deadline for corporates extended till November 15; check details
Taxpayers to get major relief
With the implementation of these changes, taxpayers will get a major relief. Here’s how. The collector making the TCS payment will have to give a declaration to the tax collecting bank or other institution, in which it will have to be told that TCS should be credited on the PAN of another person.
In this declaration, it is necessary to provide the name, address, and PAN of the individual to whom TCS credit is being granted. Details about the payment for which the credit is applicable must also be included, along with the reason for granting credit to this person.
For more news like this visit Officenewz.com
