Income Tax Rules Amended for Claiming Credit for TCS and TDS for Salaried Employees

Moneylife Digital Team 17 October 2024

Economy & Nation

The central board of direct taxes (CBDT) has notified amendments in income-tax (I-T) rules for ease in claiming credit for tax collected at source (TCS) and tax deducted at source (TDS) for salaried employees and enabling claiming TCS credit of minors in the hands of parents.

CBDT introduced form no12BAA as the prescribed statement of particulars required under sub-section (2B) of Section 192 of the Income-tax Act. Employees must provide these particulars to their employers, who are responsible for making payments under sub-section (1) of Section 192. The employer, in turn, will deduct TDS on salary after considering the furnished particulars, the board says.

Sub-section (2B) of Section 192 of the I-T Act is amended vide the Finance (No. 2) Act, 2024 (FA (No. 2)) to include any tax deducted or collected at source under the provisions of Chapter XVII-B or Chapter XVII-BB, as applicable, for making tax deductions in the case of salaried employees.

Further, sub-section (4) of Section 206C of the Act is also amended vide FA (No. 2) to allow the credit of TCS to a person other than the collectee—such as a parent in the case of a minor collectee—when the minor’s income is clubbed with that of the parent.

Accordingly, the Rules has been amended to allow credit of TCS to a person other than the collectee, in whose hands the income of the collectee is assessable.

CBDT Notifies Amendments in Income-tax Rules for Ease in Claiming Credit for TCS Collected/TDS Deducted for Salaried Employees and for claiming TCS Credit of Minors in the Hands of Parents.

?CBDT Notification No. 114/2024 dated 16.10.2024 issued.

?Rule 37-I of the Income-tax… pic.twitter.com/sVGQy5hzNS
— Income Tax India (@IncomeTaxIndia) October 17, 2024