-Amendment in income tax rules for salaried employees notified
New Delhi, 17 October (Hindustan Reporter). The Central Board of Direct Taxes (CBDT) has taken an important step to reduce the tax burden on taxpayers. CBDT has notified amendments to the Income Tax rules. These changes allow someone else to claim the credit for tax collected at source (TCS) or TDS deducted instead of just the person making the payment.
The Finance Ministry said in a statement issued on Thursday that the CBDT has notified amendments to the Income Tax Rules to facilitate salaried employees in claiming credit for TCS collected or TDS deducted. This change in income tax rules will also make it possible for minors in the hands of parents to claim TCS credit.
The Income Tax Rules, 1962 (‘Rules’) have been amended vide Notification No. 112/2024 dated October 15, 2024 issued by the CBDT, in which the details required under sub-section (2B) of Section 192 of the Act have been amended. Form No. 12BAA has been introduced as details. Employees must provide these details to their employers, who are responsible for making the payments under sub-section (1) of section 192. In return the employer will deduct TDS on the salary taking into account the details submitted.
According to the Income Tax Department, sub-section (2B) of section 192 of the Income Tax Act, 1961 (‘Act’) has been amended under the Finance (No. 2) Act, 2024 (FA (No. 2)) so that salaried To include any tax deducted or collected at source under the provisions of Chapter XVII-B or Chapter XVII-BB for the purpose of deducting tax in the case of employees. Apart from this, sub-section (4) of section 06C of the Act has also been amended under FA (No. 2) so that credit of TCS can be given to any person other than the collector.
The Finance Ministry said the CBDT has notified amendments to the Income Tax rules to make it easier for salaried employees to claim credit for TCS collected or TDS deducted. Under this, parents have been enabled to claim TCS credit for minors. For example, in the case of a minor collector, the parents – when the income of the minor is clubbed with the income of the parents. For this, under the Central Board of Direct Taxes Notification No. 114/2024 dated October 16, 2024, Rule 37-I of the Rules has been amended to grant credit of tax collected at source to any person other than the collector, in whose hands The income of the collector is taxable.
Hindusthan News / Prajesh Shankar
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