The Finance Ministry has made changes in the IT rules. This will make it easier for salaried employees to claim credit for TCS collected or TDS deducted. Through a notification issued on October 15, the CBDT has amended the Income Tax Rules 1962 and introduced Form No. 12BAA.
Income Tax News: The Central Board of Direct Taxes (CBDT) has notified some changes in the rules related to income tax 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 subsection 2B of section 192 of the IT Act 1961 has been amended under the Finance Act 2024. This will include any TDS or TCS (Tax Collected at Source) in Chapter XVII B or Chapter XVII-BB for tax deduction in the case of salaried employees.
Employer will have to give information
Through a notification issued on October 15, CBDT has amended the Income Tax Rules 1962 and introduced Form No. 12BAA, which will be a prescribed statement of information required under subsection 2B of section 192 of this Act. Employees will have to give this information to their employer, who is responsible for payments under section 192. The employer will deduct TDS on salary based on the information provided.
Apart from this, a change has also been made to allow a person other than the person who spent the TCS credit for tax paid on a specific expense to claim it. This will allow the parent to claim TCS credit in the case of a minor collector whose income is clubbed with the parent. The Finance Ministry statement said that sub-section 4 of section 2060 of the Income Tax Act has been amended to allow credit of TCS to a person other than the collector.
Taxpayers will get convenience
This change will help taxpayers to reduce 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, in which it will have to be told 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 will have to be given, information about the payment for which credit is to be given and it will also have to be told why credit is being given to such a person.
Direct tax collection increased by 182% in 10 years
In the last 10 years, direct tax collection increased by 182% to Rs 19.60 lakh crore in the financial year 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.
