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The CBDT has revised Income Tax Rules to simplify TDS and TCS credit claims for salaried employees.

National | Dated: 26 Oct 2024

The Central Board of Direct Taxes (CBDT) has updated the Income Tax (IT) rules to make it easier for salaried employees to claim credit for Tax Collected at Source (TCS) and Tax Deducted at Source (TDS). This change aligns with the guidelines from the Union Budget 2024-25.

🎯 Key Highlights:

  • - The updates aim to resolve cash flow challenges for employees and reduce the compliance requirements associated with refund claims.
  • - Sub-section (2B) of Section 192 of the Income Tax Act, 1961 has been revised to simplify TDS deductions for salaried employees. This includes all relevant TDS and TCS provisions from Chapter XVII-B and Chapter XVII-BB of the Act.
  • - Employees will use this form to report TDS and TCS received from sources other than salaries, like fixed deposits, insurance commissions, dividends, and TCS on purchases such as cars or foreign currency, effective October 1, 2024.

💡 Other Important Facts:

  • (i) Additionally, an amendment has been made to sub-section (4) of Section 206C of the Act, allowing parents to claim TCS credits when their minor child's income is included in the parent's taxable income.
  • (ii) The CBDT Notification No. 114/2024 also amends Rule 37-I of the IT Rules, enabling individuals other than the collectee to claim TCS credits, in line with the new provisions.

📚 Test Your Knowledge:

What has the CBDT recently revised to simplify TDS and TCS credit claims for salaried employees?

Correct Answer: Income Tax Rules

🚀 Quick Recap:

About Central Board of Direct Taxes (CBDT)

  • Chairman: Ravi Agrawal
  • Headquarters: New Delhi