Liberalized Remittance Scheme (LRS) & TCS Changes in Budget 2025 The Union Budget 2025 has introduced key adjustments that affect how Indian residents remit money abroad, particularly benefiting travellers, students, and medical tourists. Here’s what you need to know: What is the Liberalized Remittance Scheme? Liberalized Remittance Scheme: A framework that allows resident individuals to …
Steps to Claim and Rectify a Wrongly Deposited Challan This blog provides an insightful overview of rectifying a common yet specific error in income tax challan payments, particularly when a payment meant for NON-TDS/TCS (CHALLAN NO./ITNS 280) is mistakenly deposited under TDS/TCS (CHALLAN NO./ITNS 281). Here’s a more structured breakdown of the steps discussed: Understanding …
What is Form 16C? Form 16C is a certificate under the Income Tax Act that provides details of the TDS deducted on rent payments. It is specifically associated with Section 194IB, which mandates that individuals or HUFs paying rent of INR 50,000 or more per month deduct TDS at 5%. Unlike other TDS deductions that …
CBDT New Form 12BAA allows employees to inform their employers of taxes already paid on other income sources. The Central Board of Direct Taxes has introduced Form 12BAA following Budget 2024’s announcement to facilitate employees in reporting tax deductions collected from sources other than their salary. This form allows employees to inform their employers about …
Tax Deducted at Source rates chart proposed in Union Budget 2024 have been approved in the Finance Bill: Budget 2024 introduced several tax reforms & Income Tax amendments, which were ratified in the Finance Bill and became effective from Oct 1, 2024. Some of the key changes include revised TDS rates and adjustments to other …
Allowing TDS Credit to a Person Other Than the Recipient Need for Allowance of TDS Credit in the Hands of a Person Other Than the Recipient: Section 199 of the Income Tax Act, 1961, read with Rule 37BA of the Income Tax Act, 1961of the Income Tax Rules, stipulates that Tax deduction at source credit …
Overview on TDS U/s 194T- Payment to partners of firm Introduction of Section 194T: Prior to this, Tax Deducted at Source was not applicable on payments like salary, remuneration, interest, or commission made to partners by the firm. However, TDS was applicable on payments to employees of the firm. Section 194T now mandates that Tax …
CBDT: TDS/TCS provisions on death of deductee/collectee before linking of PAN & Aadhaar The Central Board of Direct Taxes has issued Circular No. 8 of 2024 on August 5, 2024, providing relaxations in the TDS and TCS (Tax Collected at Source) provisions under the Income-tax Act, 1961, in the event of the death of the …
Eligibility U/S 197 for a certificate for Nil or lower TDS deduction Income Covered & Eligibility Condition of Apply U/s 197 Applicants must demonstrate that their projected tax liability for the fiscal year is lower than the TDS amount deducted at standard rates as per eligibility u/s 197 for a certificate for Nil or lower …
Frequently Asked on TCS on Liberalized Remittance Scheme. Questions: 1. what is the effective date of introduction of the tax implications? The effectiveness of the Tax collected at the source clause on international remittances is updated from 1 April 2020 to 1 October 2020. Question:2. What all transactions will be affected by this Tax collected …