I-T dept amends TDS form, makes it more comprehensive – Times of India: NEW DELHI: The earnings tax division has amended the TDS type, making it extra complete and mandating deductors to state causes for non-deduction of tax.

I-T dept amends TDS form, makes it more comprehensive – Times of India

As per the amended type, banks will even should report Tax Deducted at Supply (TDS) for money withdrawals above Rs 1 crore.
By way of a notification, the Central Board of Direct Taxes (CBDT) has amended Revenue Tax Guidelines to incorporate TDS on e-commerce operators, dividend distributed by mutual funds and enterprise trusts, money withdrawals, skilled charges and curiosity.
Nangia & Co LLP Associate Shailesh Kumar mentioned with this notification, the federal government has revised the format of kinds 26Q and 27Q, the place particulars of TDS quantity deducted and deposited on numerous resident and non-resident funds are required to be crammed.
Type 26Q is used for quarterly submitting of TDS returns on any cost aside from wage to Indian residents by the federal government or corporates working in India.
Type 27Q is used for quarterly submitting of TDS returns electronically on any cost aside from wage to non- residents, together with NRIs and foreigners. Besides for presidency deductors, it’s obligatory for all different deductors to say their PAN within the type.
Kumar mentioned “the brand new kinds are extra complete and require payers to report not solely these circumstances the place TDS is deducted, but in addition circumstances the place TDS shouldn’t be deducted for any cause. Separate codes have been offered to cowl completely different conditions of deduction of TDS at decrease price/ non-deduction of TDS.”
The revised kinds and guidelines additionally search to include reporting for brand new sections of TDS inserted within the Revenue Tax Act, reminiscent of Part 194N for money withdrawals, Part 197A allowing non-deduction of TDS in numerous conditions, amongst others.
Within the 2019-20 funds, the federal government had launched a TDS levy of two per cent on money withdrawals of greater than Rs 1 crore from a checking account in a single monetary 12 months to discourage enterprise funds in money.

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