New Delhi: The Central Board of Direct Taxes (CBDT) has made amendments to the Income-tax Rules to simplify the process of claiming credit for TCS collected or TDS deducted for salaried employees.
The Finance (No. 2) Act, 2024, has included any tax deducted or collected at source under Chapter XVII-B or Chapter XVII-BB for tax deductions in the case of salaried employees. The Income-tax Rules, 1962 have been amended, introducing Form No. 12BAA as the prescribed statement of particulars required under sub-section (2B) of Section 192.
Employees must provide these particulars to their employers, who are responsible for making payments under sub-section (1) of Section 192.
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The employer then deducts TDS on salary after taking into account the furnished particulars. Additionally, sub-section (4) of Section 206C of the Act has been amended to allow credit of TCS to a person other than the collectee, such as a parent in the case of a minor collectee.
Rule 37-I of the Rules has also been amended to allow credit of tax collected at source to a person other than the collectee, in whose hands the income of the collectee is assessable.
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