After the imposition of new rates of TDS (Tax Deducted at Source) on cash removal on items larger than a bank account, the Income Tax Department has now made further changes in the TDS laws. After this change by the IT staff, it will now become necessary to give other information to the bank customers. In a recently released notification, the Central Board of Direct Taxes has informed about changes in TDS forms. This change has been made under the Finance Act 2020.
Now you have to give this information
- Regarding this move of the Income Tax Department, experts say that the new TDS form is wider than before.
- In this, the amount on which TDS is deducted will have to be given. But, apart from this, now taxpayers will also be required to disclose the amount on which TDS is not deducted due to any reason.
- Different codes have been made available for different status of TDS or TDS cut at a lower rate.
After the amendment in Law 31A, it has become obligatory that taxpayers also give information about the amount they have paid but have not deducted tax on it or deducted tax at a lower rate. It has been implemented from 1 July 2020. The Income Tax Department has revised the TDS rules and linked income tax revenues for those who withdraw cash in more items. This will cover those who withdraw cash from any bank, cooperative institution or post office.