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Income Tax News: The Central Board of Direct Taxes (CBDT) has notified some changes in income tax rules to provide relief to taxpayers. This will make it easier for salaried employees to claim credit of TCS collected or TDS deducted. Also, due to these changes, parents will be able to claim TCS credit of minors. The Finance Ministry said on Thursday that under the Finance Act 2024, sub-section 2B of Section 192 of the IT Act 1961 has been amended. This will include any TDS or TCS (tax collected at source) in Chapter XVII B or Chapter XVII-BB for tax deduction in case of salaried employees.
The employer will have to provide information
Through a notification issued on October 15, the CBDT has amended the Income Tax Rules 1962 and introduced Form No. 12BAA, which will be a prescribed statement of information required under sub-section 2B of section 192 of the Act. Employees must provide this information to their employer, who is responsible for payment under section 192. The employer will deduct TDS on the salary based on the information provided.
Additionally, a change has also been made that TCS credit for tax paid on a particular expenditure can also be claimed by a person other than the person spending it. This will allow the parent to claim TCS credit in case of a minor collector whose income is clubbed with that of the parent. The Finance Ministry statement said that sub-section 4 of Section 2060 of the Income Tax Act has been amended to allow TCS credit to a person other than the collector.
Taxpayers will get facility
This change will help taxpayers in reducing their income tax liability. Understand the news: The collector making the TCS payment will have to give a declaration to the tax collecting bank or other institution stating that TCS should be credited on the PAN of another person. In such a declaration, the name, address and PAN of the person to whom TCS is to be given, information about the payment for which credit is to be given and also why credit is being given to a particular person will have to be given.
182% increase in direct tax collections in 10 years
Direct tax collections increased by 182% in the last 10 years to Rs 19.60 lakh crore in FY 2023-24. This information was received from the latest time series data of the department. According to this, corporate tax collection has more than doubled in the last 10 years to Rs 9.11 lakh crore in 2023-24. During this period, personal income tax collection increased almost 4 times to Rs 10.45 lakh crore.