Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) are essential components of India’s tax system to ensure better tax compliance and reduce the burden of lump-sum payments for taxpayers. However, non-compliance with TDS / TCS provisions can lead to penalties and interest charges. In this article, we will explore the various cost…
Failure to deduct tax, deducting less tax, delay in payment of the deducted tax to the Government, makes the deductor an assessee liable to penalty, which is equal to the amount for which the assessee is a deemed defaulter. In case of non-deduction or less deduction or delay in deduction of tax, an interest of…
In this updated version changes have an impact only in Form 27Q wherein new ‘Nature of Remittances’ has been included. This is applicable to FY: 2024-25 (Quarter 2) onwards. These additions are summarized as under: 196B – Long-Term Capital Gains arising from Transfer of units referred to in section 115AB codes of Nature of Remittance…
7th October 2024 – Due date for TDS / TCS payment for deductions/collections during September 2024 15th October 2024 – Due date of filing TCS Return for Quarter 2 of Financial Year 2024-2025 30th October 2024 – Due date of issuing TCS certificate for Quarter 2 of Financial Year 2024-2025 31st October 2024 – Due date of filing TDS Returns for Quarter 2 of Financial Year 2024-2025…
Reference to CBDT Circular No. 05/2024 dated 15th March 2024, the monetary limits has been revised vide Circular No 09/2024 dated 17th September 2024 for filing income tax appeals by the Department before Appellate Tribunal, High Court and Supreme Court. Click on the links below to view the circulars: Circular No 09/2024 dated 17th September…
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…
Starting from 1st April 2025, a significant change is being introduced regarding the filing of Correction Statements. Under the current provisions, taxpayers have the flexibility to file correction statements for any period, as many times as needed, with practically no restrictions on the timeframe. However, this will soon change with the new rules limiting the…
Understanding TDS: An Overview Tax Deducted at Source (TDS) is a mechanism instituted by the Indian government to ensure the timely collection of tax revenue. Under this system, individuals or businesses that make specified payments are required to deduct tax at the source before making the payment. Essentially, TDS acts as a means of gathering…
What is Section 194H? Section 194H of the Income Tax Act is specifically dedicated to TDS deducted on income earned through brokerage or commission by any person liable to pay to an Indian resident. This section ensures that tax is collected at the source on such payments. It is important to note that Section 194H…
What are Correction Statements? Correction statements are critical tools utilized by taxpayers to rectify errors in their Tax Deducted at Source (TDS) filings. These statements ensure that discrepancies are resolved promptly, safeguarding the taxpayer’s interests and maintaining the integrity of tax records. Understanding their purpose is essential for effective tax management. Six-Year Limitation on Correction…