Tax Rules: Now it will be easy to claim TDS and TCS credit, CBDT amended the income tax rules

The Income Tax Department has eased the rules for claiming TCS and TDS credit for salaried taxpayers. The Central Board of Direct Taxes (CBDT) has amended the income tax rules for this. After this amendment, parents will also be able to claim TCS credit for their minor children. Let us know about this in detail.

CBDT issued Form 12BAA

From the next financial year, employees who have income from sources other than salary will have to submit a new Form 12BAA. CBDT has released this form on 15 October 2024. CBDT has said that sub-section (2B) of section 192 of the Income Tax Act, 1961 has been amended. With this, salaried taxpayers will be able to avail the benefit of tax deduction.

Employees will be able to tell about financial situation

Through this new form, employees will be able to inform employers about their financial situation. Employers have to deduct TDS from the salaries of employees. Employers deduct tax from the salaries of employees every month and deposit it with the government. Now employees will be able to inform their employers about the TDS deducted through Form 12BAA. This will help employers decide how much tax they have to deduct.

Form 12BAA will include this information

Form 12BAA may contain information related to fixed deposits, insurance commission and dividends received on investments in shares. If the employee has made such purchase or payment in foreign currency on which TCS has been deducted, then he can also give this information to the employer through Form 12BAA. This form will include information about both TDS and TCS.

Everything you need to know about TDS and TDS

In this form, employees will have to tell under which section TDS was deducted. The name and address of the person deducting 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 mentioned. How much tax was deducted will also have to be disclosed. In case of TCS also he will have to give all this 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 also. For this, sub-section (4) of section 206C has been amended. This will enable parents whose minor children's income has been included in their income to claim credit on TCS. This will transfer TCS credit from the minor to the parent.