TCS Under Income Tax Rules Amended by CBDT Department

The Central Board of Direct Taxes (CBDT) has amended the provision of Income Tax Rules A simple way to understand all major changes under rebates and deductions in income tax rules for the FY 2020-21 (AY 2021-22). Also, we included penalty charges if ITR filing missed. read more, 1962. It will now be called Income Tax (17th Amendment) Rules, 2020. Under the amendment, the rules of TCS (Tax Collected at Source) has been changed by the board. Now, the assessee is required to report the amount on which the TCS is not collected from the buyer.

Rule 31AA, Rule 37BC, Rule 37CA, Rule 37-I of the Income Tax Rules, 1962, have been amended by the board. The filing procedure of Form No. 27EQ will now include and be filed according to the rules under the Finance Act, 2020. Rule 31AA contains the provisions of filing ‘Statement of TCS’ under section 206C(3) of the Income Tax Act, 1961. Section 206C (3) states that all the assessees are required to record the collection of TCS under the prescribed form and the liabilities will be paid to the government accordingly.

Rule 31AA(1)/(2) requires the assessee to file the returns of TCS Free download the trial version of Gen TDS/TCS return filing software. SAG Infotech endows with some active hours of the Gen TDS. each quarter under Form No. 27EQ. Two new provisions are added to Rule 31AA(4) under sections 206C(1G) and 206C(1H) according to the newly introduced Finance Act, 2020. A new rule to insert the word ‘dividend’ after ‘fees for technical services’ is required to be inserted as per the Official Gazette, in rule 37BC, in sub-rule (1). The words, brackets, figures and letters under ‘sub-section (1) or sub-section (1C)’ of Rule 37CA should be omitted from now on, whenever they appear.

In the principal rules, in rule 37-I, after sub-rule (2), “Notwithstanding anything contained in sub-rule (2), for the purposes of subsection (1F) or, sub-section (1G) or, sub-section (1H) of section 206C, credit for tax collected at source shall be given to the person from whose account tax is collected and paid to the Central Government account for the assessment year relevant to the previous year in which tax collection is made,” sub-rule shall be inserted.

Under Appendix II, in Form 27EQ the following annexure of “Party wise Break Up of TCS” should be included in the principal rules.