Big Update On TAX RULES - Salaried Employees Must See
To make the tax procedure easier for parents and salaried persons, the Central Board of Direct Taxes (CBDT) has made major revisions to the income tax regulations. Form No. 12BAA, a new format designed to simplify the process of claiming Tax Deducted at Source (TDS) or Tax Collected at Source (TCS) credits, is one of the modifications that were announced on october 15, 2024.
Major Highlights:
Easier TDS/TCS Credit Claims:
Under Chapters XVII-B or XVII-BB of the Income Tax Act of 1961, salaried workers can now quickly claim credit for any TDS or TCS. It is anticipated that this would lower the tax burden and streamline tax filings.
TCS Credits for parents of Minors:
When a parent's income is combined with that of a minor, the parent may now claim tcs credits. With the correct declaration, credit transfers are permitted under this change to Section 206C of the Income Tax Act.
Employer's Role Enhanced:
Workers are now required to provide their employers with pertinent information on Form No. 12BAA, which they will use to deduct TDS from pay. Accurate tax deductions will be ensured in large part by the employer.
New tcs Credit Transfer Declaration Process:
Taxpayers who pay tcs can now inform the collecting organization that they would like the credit to be moved to a different PAN. It is necessary to include information such as the recipient's name, PAN, and the purpose of the credit transfer.
A Decade of Growth in Direct Tax Collection:
Over the last ten years, India's direct tax revenue has increased by an astounding 182%, reaching ₹19.60 lakh crore in FY 2023–2024. During this time, personal income tax receipts then quadrupled to ₹10.45 lakh crore, while corporate tax collections more than doubled to ₹9.11 lakh crore.
These modifications seek to give taxpayers more ease and transparency in addition to streamlining the tax code. These changes might drastically lower your tax burden, regardless of whether you're a parent overseeing a minor's income or a paid worker.
Major Highlights:
Easier TDS/TCS Credit Claims:
Under Chapters XVII-B or XVII-BB of the Income Tax Act of 1961, salaried workers can now quickly claim credit for any TDS or TCS. It is anticipated that this would lower the tax burden and streamline tax filings.
TCS Credits for parents of Minors:
When a parent's income is combined with that of a minor, the parent may now claim tcs credits. With the correct declaration, credit transfers are permitted under this change to Section 206C of the Income Tax Act.
Employer's Role Enhanced:
Workers are now required to provide their employers with pertinent information on Form No. 12BAA, which they will use to deduct TDS from pay. Accurate tax deductions will be ensured in large part by the employer.
New tcs Credit Transfer Declaration Process:
Taxpayers who pay tcs can now inform the collecting organization that they would like the credit to be moved to a different PAN. It is necessary to include information such as the recipient's name, PAN, and the purpose of the credit transfer.
A Decade of Growth in Direct Tax Collection:
Over the last ten years, India's direct tax revenue has increased by an astounding 182%, reaching ₹19.60 lakh crore in FY 2023–2024. During this time, personal income tax receipts then quadrupled to ₹10.45 lakh crore, while corporate tax collections more than doubled to ₹9.11 lakh crore.
These modifications seek to give taxpayers more ease and transparency in addition to streamlining the tax code. These changes might drastically lower your tax burden, regardless of whether you're a parent overseeing a minor's income or a paid worker.