DIRECT TAX ALERT – EMPLOYEE TAXATION – CHANGES IN
TDS, 2016-17
By Mr. K. Vaitheeswaran,
Advocate and Tax Expert, Chennai
Background
The CBDT vide
Notification No. 30/2016 dated 29.04.2016 has amended the Income Tax Rules,
1962 (11th
Amendment)
and the amendment shall come into force from 01.06.2016.
Concept of Form
against the existing Self – Declaration
Currently,
employees claiming tax deductions file a self- declaration of their savings and
other eligible deductions to their employer along with applicable evidence and
the employer would deduct tax at source after taking into account the tax
savings made by the employee.
Rule 26C –
Furnishing of Evidence of Claims by Employee for TDS under Section 192
 |
| Mr. K. Vaitheeswaran, Advocate and Tax Expert, Chennai |
(i) The assessee
is required to furnish evidence or particulars of claims referred to in Rule
26C(2) in Form 12BB for the purpose of estimating his income or computing the
tax deduction at source.
(ii) If the
claim is on account of House Rent Allowance (HRA), name, address and PAN of the
landlord is required where the rent paid during the previous year exceeds Rs. 1
lakh.
(iii) Evidence
of expenditure is required if the claim is on account of leave travel
concession/assistance.
(iv) Evidence of
investment or expenditure is required for deductions under Chapter VI-A.
(v) In respect
of deduction of interest under the head ‘income from House Property’ name,
address and PAN of the lender is required.
Form
12BB
Form 12BB
provides for information such as name and address of employee, PAN of the
employee, financial year, details of claims and evidence thereof and
verification.
Rule 30 and Rule
37CA
(i) Rule 30(2A)
amended whereby sum deducted under Section 194IA needs to be paid within a
period of 30 days as against 7 days.
(ii) Rule 30(4)
amended whereby statement in form No. 24G needs to be submitted to the agency
authorised by the Principal Director of Income Tax (Systems) in respect of tax
deducted by the deductors and reported to him.
(iii) Rule
30(4A) inserted to provide that the statement should be furnished on or before
30th
April
if it relates to the month of March and on or before 15 days from the end of
the relevant month in any other case. Further, Rule 30(4B) deals with
electronic filing of such statement.
(iv) Similar
amendments carried out to Rule 37CA in the context of Section 206C(1) or
206C(1C).
Rule 31A – Due
Dates
The statement of
deduction of tax at source under Section 200(3) for the quarter of the
financial year ending with the date specified in column (2) of the table below
shall be furnished by the due date specified in the corresponding entry in
column (3) of the said table.
S.
No.
|
Date
of ending of quarter of financial year
|
Due
Date
|
(1)
|
(2)
|
(3)
|
1.
|
30th
June
|
31st
July of the financial year
|
2.
|
30th
September
|
31st
October of the financial year
|
3.
|
31st
December
|
31st
January of the financial year
|
4.
|
31st
March
|
31sSt
May of the financial year immediately following the financial year in which
deduction is made.
|
Disclaimer:- This Direct Tax Alert is
only for the purpose of information and does not constitute or purport to be an
advise or opinion in any manner. The information provided is not intended to
create an attorney-client relationship and is not for advertising or
soliciting. K.Vaitheeswaran & Co. do not intend in any manner to solicit
work through this Tax Alert. The Tax Alert is only to share information based
on recent developments and regulatory changes. K.Vaitheeswaran & Co. is not
responsible for any error or mistake or omission in this Tax Alert or for any
action taken or not taken based on the contents of this Tax Alert.
For
more details
Mr. K. Vaitheeswaran, Advocate and Tax Expert, Chennai
CHENNAI
|
||||
Flat
No.3, First Floor,
No.9,
Thanikachalam Road,
T.
Nagar,
Chennai
– 600 017.
Tele.:
044 + 2433 1029, 044 + 2433 4048
|
||||
No comments:
Post a Comment