The government has given a big relief to taxpayers/businessmen regarding TDS/TCS deduction. An exemption has been given regarding deactivation of PAN (Permanent Account Number). A circular regarding this has been issued by the Revenue Department of the Finance Ministry on Tuesday.
Income Tax Circular: There is very good news for taxpayers. The government has given a big relief to taxpayers/businessmen regarding TDS/TCS deduction. An exemption has been given regarding deactivation of PAN (Permanent Account Number). A circular regarding this has been issued by the Revenue Department of the Finance Ministry on Tuesday. Actually, taxpayers have got exemption from the rule of double deduction if PAN is deactivated. Now there will be no double deduction on inactive PAN.
When will you get the benefits?
In case of PAN becoming inoperative, a provision was made to deduct double the tax, exemption on which will continue till May 31, 2024. The rule of no double deduction will remain in effect till May 31. In this, transactions done till March 31 will also be exempted from this rule.
Note: What is TDS?
TDS TDS is deducted on different sources of income. Such as salary, interest or commission received on any investment etc. The government collects taxes through TDS. However, this does not apply to every income and transaction.
Some rules have been set by the Income Tax Department for deducting TDS. Let us tell you that the government does not deduct TDS directly.
The responsibility of depositing TDS in the government account rests with the person making the payment or the organization making the payment. Those who deduct TDS are called deductors. The one who gets payment after deducting tax is called deductee.
TDS rates start from one percent to 30 percent. If we talk only about TDS on salary, then according to the income slab, TDS of 10 percent is levied on the total income of the person.
At the same time, up to 10 percent TDS has to be paid on maturity of FD. If the customer has not given his PAN card information to the bank, 20 percent TDS is charged.
What is TCS: TCS is actually called tax deposited at source. This is also called the tax collected from income. TCS is paid by the seller, dealer, vendor and shopkeeper. TCS is actually deducted on high value transactions.
