Tax Deducted at Source (TDS) & Tax Collected at Source (TCS) compliance is a crucial responsibility for all deductors and collectors. While the process is straightforward, common mistakes can lead to penalties, interest charges, and unnecessary complications. Here are some of the most frequent compliance pitfalls and actionable steps on how to avoid them. 1….
Section 192A of the Income Tax Act, 1961 deals with the TDS on premature withdrawal of accumulated balance from the Employees’ Provident Fund (EPF). This section ensures that the government receives a portion of the tax on premature EPF withdrawals, which are considered taxable income in such cases. It also encourages employees to retain their…
The Income Tax Department has released a new version of the File Validation Utility (FVU) to validate TDS/TCS returns before submission. This update introduces several enhancements and changes, effective from FY 2024-25, aimed at improving compliance and accuracy in TDS/TCS reporting. These are summarized as under: 1. Form 24Q – Annexure II (Salary Details) A…
The Cabinet Committee on Economic Affairs (CCEA) has approved the much-awaited PAN 2.0 Project by the Income Tax Department, as announced in the press release dated 26th November 2024. This landmark initiative is designed to modernize and unify all processes related to Permanent Account Numbers (PAN) and Tax Deduction and Collection Account Numbers (TAN). With…
As per the recent CBDT Circular No. 08/2024 dated 5th Aug ’24, it has been provided that in the event of death of the Deductee / Collectee on or before 31.05.2024, higher deduction / collection rate under Section 206AA / 206CC will not apply if the deceased had not linked their PAN with Aadhaar. Click…
7th August 2024 – Due date for TDS / TCS payment for deductions / collections during July 2024 15th August 2024 – Due date for issuing TDS certificate for Quarter 1 of Financial Year 2024-2025 *Please ensure timely compliance to avoid interest and/or penalties Use TDSMAN Software to file seamless & error-free TDS / TCS returns, without any professional help.
In the recently announced Budget on 23rd July, 2024, there are quite a few proposals related to TDS / TCS. These have been summarized in this article. Highlights: Reduction / Optimization of TDS Rates under different sections TDS on repurchase of units by Mutual Funds / UTI removed (Section 194F – omitted) TDS introduced on…
Online poker, rummy and other online games offering real money are seeing real-time growth in the last few years. The online gaming industry witnessed massive growth in the last 10 years with people having personal computers and smartphones that offer the ability and the liberty to live in a virtual world full of possibilities. Earlier…
In the Finance Act of 2021, the Indian government inserted Section 194Q. The Indian government’s intention behind enacting this law was to generate a trail of high-value purchases and sales of products. What is Section 194Q? As per this new provision 194Q, a buyer of the goods needs to deduct the TDS if the product…
7th July 2024 – Due date for TDS / TCS payment for deductions/collections during June 2024 15th July 2024 – Due date of filing TCS Return for Quarter 1 of Financial Year 2024-2025 30th July 2024 – Due date of issuing TCS certificate for Quarter 1 of Financial Year 2024-2025 31st July 2024 – Due date of filing TDS Return for Quarter 1 of Financial Year 2024-2025 *Please ensure timely compliance to…