May 272015

INCOME TAX- For TDS & TCS- Nine Amendments shall be effective from 1st June 2015

1. Requirement for obtaining evidence/ particulars by employer for TDS–Section 192-Prescribed form from employee to be obtained for his claims.

2. TDS from premature withdrawal from Employees’ Provident Fund Scheme (EPFS)–Sections 192A and 197A – Trustees of RPFs shall, at the time of payment of the accumulated balance due to the employee, deduct tax at source at the rate of 10%, where the aggregate withdrawal is R30,000/- or more. Form No. 15G/15H available for non deduction. No PAN- Marginal Rate.

3.TDS from interest (other than interest on securities)–Section 194 N – TDS from Recurring deposit-TDS from deposit in cooperative Banks- Interest from all branches of a Bank is to be considered to check cut off amount of Rs 10000/-

4.TDS from payments to transporters–Section 194C- Exemption will be available
only to those transporters who own ten or less goods carriages at any time during the previous year

5. Obtaining/quoting tax deduction and collection account number (TAN) relaxed for certain notified persons–Section 203A- proposed to amend Section 203A to the effect that the requirement of obtaining and quoting of TAN shall not apply

6. Processing of TCS returns–Section 206CB- Processing of TCS (tax collected at source) statements on the same lines as TDS statements.

7.Self-declaration for non-deduction of tax from life insurance payments–Sections 194DA and 197A- Self-declaration in the prescribed Form No. 15G/15H made applicable.

8.Interest on certain bonds and Government securities earned by FIIs–Section
194LD-Concessional rate of tax is proposed to be extended up to 30th June 2017.

9. Furnishing of information made more stringent and penalty introduced – Sections 195 and 271-I-The obligation to furnish Form 15CA (and also Form 15CB) will have to be complied with. Section 271-I to levy a penalty of R1,00,000/- if the person required to furnish information under Section 195 fails to furnish such information or furnishes inaccurate information.

Courtesy: CA C. Maneklal