The Income Tax Department has simplified the rules for salaried taxpayers to claim TCS and TDS credit. The Central Board of Direct Taxes (CBDT) has amended the Income Tax rules for this. After this amendment, parents will be able to claim TCS credit for their minor children as well. Let us know about this in detail.
CBDT issues Form 12BAA
From the next financial year, employees who have income from sources other than salary will have to submit the new Form 12BAA. CBDT has released this form on October 15, 2024. CBDT has said that sub-section (2B) of section 192 of the Income Tax Act, 1961 has been amended. This will enable salaried taxpayers to avail the benefit of tax deduction.
Employees will be able to tell about their financial situation
With this new form, employees will be able to tell their employers about their financial situations. Employers have to deduct TDS from the salary of the employees. Employers deduct tax from the salary of the employees every month and deposit it with the government. Now employees will be able to tell their employers about the TDS deducted through Form 12BAA. With this, employers will be able to decide how much tax they have to deduct.
These details will be included in Form 12BAA
Form 12BAA may contain information related to dividends on fixed deposits, insurance commission and investments in shares. If the employee has made such purchases or payments in foreign currency on which TCS has been deducted, then he can also give information about this to the employer through Form 12BAA. This form will include information about both TDS and TCS.
Everything about TDS and TDS has to be told
In this form, the employees will have to tell under which section the TDS was deducted. The name and address of the person who deducted the TDS will also have to be given in this form. The tax deduction and collection account number of the deductor will also have to be told. How much tax was deducted will also have to be told. In the case of TCS also, he will have to give all these information.
Will be able to claim credit in case of income clubbing
Now parents will be able to claim TCS credit for their minor children as well. For this, amendment has been made in sub-section (4) of section 206C. This will allow parents whose minor children’s income has been clubbed in their income to claim TCS credit. This will transfer the TCS credit from the minor to the parents.
