Amendments in our Indian Tax Laws… these days we encounter it very frequently. Till the time we understand the law properly… law changes. Though coping up with the amendments is very difficult but now, it has become an integral part of our tax life. images
Throughout the financial year, we come across various amendments. It is to note that occasionally we even miss out few either due to unawareness or due to misunderstanding of its effective date. Sometimes we desire these amendments and sometimes we are forcefully made to desire it.
Till now, you must be aware of new service tax rate getting effective from 1st June, 2015. Today, we are here, again to lay out some amendments that will be effective from 1st June, 2015. These are related to TDS/ TCS.
Things to note before you deduct TDS from 1st June:
1. Section 192- TDS from Salary
The employer has to obtain evidence or proof or particulars of prescribed claims (including claim for set-off of loss) in such manner and form prescribed.
2. Section 192A- TDS from amount paid from Recognized Provident Fund
The trustees of the Employees’ Provident Fund authorized to make payment of accumulated balance due to employees shall deduct tax @10 per cent. No tax shall be deducted where aggregate amount of such payment due to payee is less that Rs. 30,000.
Note: Form No. 15G/15H available for non deduction. Deduct tax at the Marginal Rate if no PAN furnished.
3. TDS from interest (other than interest on securities)–Section 194A- TDS from Recurring deposit-TDS from deposit in cooperative Banks- Interest from all branches of a Bank is to be considered to check cut off amount of Rs 10000.
4. Section 194C- TDS on payment to contractor or sub-contractor
Till 31st May- If recipient is a transport operator and he furnishes PAN to the deductor then TDS is not to be deducted. Such deductors will be required to intimate PAN details to the Income tax Department in the prescribed format.
From 1st June- Only transport operators who owns ten or less goods carriages at any time during the financial year is allowed for such exemption. Transport operator has to furnish a declaration to this effect to the person paying him to get such exemption.
5. Section 203A- Obtaining/quoting tax deduction and collection account number (TAN) relaxed for certain notified persons.
6. Section 206CB- Processing of TCS statements on the same lines as TDS statements.
7. Sections 194DA and 197A- Self-declaration in the prescribed Form No. 15G/15H made applicable.
8. Section 194LD- Concessional rate of tax on Interest on certain bonds and Government securities earned by FIIs is proposed to be extended up to 30th June 2017.
9. Sections 195 and 271- The obligation to furnish Form 15CA (also Form 15CB) will have to be complied with.
If the person required to furnish information under Section 195 fails to furnish such information or furnishes inaccurate information then penalty of Rs. 100000 shall b levied.
Thorough up these amendments as these are effective from 1st June, 2015.
Throughout the financial year, we come across various amendments. It is to note that occasionally we even miss out few either due to unawareness or due to misunderstanding of its effective date. Sometimes we desire these amendments and sometimes we are forcefully made to desire it.
Till now, you must be aware of new service tax rate getting effective from 1st June, 2015. Today, we are here, again to lay out some amendments that will be effective from 1st June, 2015. These are related to TDS/ TCS.
Things to note before you deduct TDS from 1st June:
1. Section 192- TDS from Salary
The employer has to obtain evidence or proof or particulars of prescribed claims (including claim for set-off of loss) in such manner and form prescribed.
2. Section 192A- TDS from amount paid from Recognized Provident Fund
The trustees of the Employees’ Provident Fund authorized to make payment of accumulated balance due to employees shall deduct tax @10 per cent. No tax shall be deducted where aggregate amount of such payment due to payee is less that Rs. 30,000.
Note: Form No. 15G/15H available for non deduction. Deduct tax at the Marginal Rate if no PAN furnished.
3. TDS from interest (other than interest on securities)–Section 194A- TDS from Recurring deposit-TDS from deposit in cooperative Banks- Interest from all branches of a Bank is to be considered to check cut off amount of Rs 10000.
4. Section 194C- TDS on payment to contractor or sub-contractor
Till 31st May- If recipient is a transport operator and he furnishes PAN to the deductor then TDS is not to be deducted. Such deductors will be required to intimate PAN details to the Income tax Department in the prescribed format.
From 1st June- Only transport operators who owns ten or less goods carriages at any time during the financial year is allowed for such exemption. Transport operator has to furnish a declaration to this effect to the person paying him to get such exemption.
5. Section 203A- Obtaining/quoting tax deduction and collection account number (TAN) relaxed for certain notified persons.
6. Section 206CB- Processing of TCS statements on the same lines as TDS statements.
7. Sections 194DA and 197A- Self-declaration in the prescribed Form No. 15G/15H made applicable.
8. Section 194LD- Concessional rate of tax on Interest on certain bonds and Government securities earned by FIIs is proposed to be extended up to 30th June 2017.
9. Sections 195 and 271- The obligation to furnish Form 15CA (also Form 15CB) will have to be complied with.
If the person required to furnish information under Section 195 fails to furnish such information or furnishes inaccurate information then penalty of Rs. 100000 shall b levied.
Thorough up these amendments as these are effective from 1st June, 2015.
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