The Union Budget 2025-26 brings notable changes to tax deduction and collection processes, aimed at streamlining compliance and administrative procedures. These amendments focus on revising thresholds, removing redundant provisions, and improving tax administration efficiency for individuals and businesses. 1. Rationalization of TDS Thresholds The government has proposed adjustments to TDS threshold limits across various sections…
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…
Dividend received by resident shareholders are now taxable as per the income tax slab rates. Sec 194 has gained prominence as TDS shall be deducted on dividend by the company issuing and paying dividend to the shareholders. Time of Deduction- TDS to be deducted before making the payment. Deductor- Principal officer of a company which…
TRACES (TDS Reconciliation Analysis and Correction Enabling System) is an online platform provided by the Income Tax Department of India. It facilitates the following services primarily related to Tax Deducted at Source (TDS) and Tax Collected at Source (TCS): TDS /TCS Return Filing: Enables deductors and collectors to file their TDS and TCS returns electronically…
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.
For the different payment types, as per applicability, standard TDS rates are specified. Under certain provisions of the Act, there could be deviation from this standard deduction rate. The ‘Remarks’ column in the TDS Return is used when; either higher or lower deduction is applicable. If standard rate is being used, the ‘Remarks’ column normally…
The PAN of an entity (Central Office, Headquarter etc.), having more than one TAN for its branches, associated with the referenced PAN, can review the ‘Aggregated TDS Compliance’ report on a regular basis for a summary of TDS compliance at organizational level. This feature provides a summary of TDS defaults of all respective TAN across…
While preparing the TDS Returns for Salary (Form 24Q – Quarter 4) pertaining to Financial Year 2023-24, many are facing challenges as they are encountering errors having code T_FV_6351 and T_FV_6354 at the time of File Validation through the Utility (FVU). These errors are encountered for those employees who fall under the ‘New Regime’ of…
TRACES (TDS Reconciliation Analysis and Correction Enabling System) is an online platform provided by the Income Tax Department of India. It facilitates the following services primarily related to Tax Deducted at Source (TDS) and Tax Collected at Source (TCS): TDS/TCS Return Filing: Enables deductors and collectors to file their TDS and TCS returns electronically (Form…
The different types of TDS / TCS certificates need to be issued on time which is summarized in the table below: Form No. Certificate – Description Frequency Due Dates Form 16 TDS on salary payment Annually 15th June Form 16A TDS on non-salary payments Quarterly 15th August 15th November 15th Feb 15th June Form 27D…