DIRECT TAX ALERT – EMPLOYEE TAXATION – CHANGES IN TDS, 2016-17 - MYREALITY.In, Real Estate, Share Market, Mutual Fund, Insurance
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Tuesday, May 10, 2016

DIRECT TAX ALERT – EMPLOYEE TAXATION – CHANGES IN TDS, 2016-17

DIRECT TAX ALERT – EMPLOYEE TAXATION – CHANGES IN TDS, 2016-17  

By Mr. K. Vaitheeswaran, 
Advocate and Tax Expert, Chennai 

Background

The CBDT vide Notification No. 30/2016 dated 29.04.2016 has amended the Income Tax Rules, 1962 (11th Amendment) and the amendment shall come into force from 01.06.2016.

Concept of Form against the existing Self – Declaration
Currently, employees claiming tax deductions file a self- declaration of their savings and other eligible deductions to their employer along with applicable evidence and the employer would deduct tax at source after taking into account the tax savings made by the employee.

Rule 26C – Furnishing of Evidence of Claims by Employee for TDS under Section 192

Mr. K. Vaitheeswaran,
Advocate and Tax Expert,
Chennai 

(i) The assessee is required to furnish evidence or particulars of claims referred to in Rule 26C(2) in Form 12BB for the purpose of estimating his income or computing the tax deduction at source.

(ii) If the claim is on account of House Rent Allowance (HRA), name, address and PAN of the landlord is required where the rent paid during the previous year exceeds Rs. 1 lakh.

(iii) Evidence of expenditure is required if the claim is on account of leave travel concession/assistance.

(iv) Evidence of investment or expenditure is required for deductions under Chapter VI-A.

(v) In respect of deduction of interest under the head ‘income from House Property’ name, address and PAN of the lender is required.



Form 12BB

Form 12BB provides for information such as name and address of employee, PAN of the employee, financial year, details of claims and evidence thereof and verification.

Rule 30 and Rule 37CA

(i) Rule 30(2A) amended whereby sum deducted under Section 194IA needs to be paid within a period of 30 days as against 7 days.

(ii) Rule 30(4) amended whereby statement in form No. 24G needs to be submitted to the agency authorised by the Principal Director of Income Tax (Systems) in respect of tax deducted by the deductors  and  reported to him.

(iii) Rule 30(4A) inserted to provide that the statement should be furnished on or before 30th April if it relates to the month of March and on or before 15 days from the end of the relevant month in any other case. Further, Rule 30(4B) deals with electronic filing of such statement.

(iv) Similar amendments carried out to Rule 37CA in the context of Section 206C(1) or 206C(1C).

Rule 31A – Due Dates

The statement of deduction of tax at source under Section 200(3) for the quarter of the financial year ending with the date specified in column (2) of the table below shall be furnished by the due date specified in the corresponding entry in column (3) of the said table.


S. No.
Date of ending of quarter of financial year
Due Date
(1)
(2)
(3)
1.
30th June
31st July of the financial year
2.
30th September
31st October of the financial year
3.
31st December
31st January of the financial year
4.
31st March
31sSt May of the financial year immediately following the financial year in which deduction is made.


Disclaimer:- This Direct Tax Alert is only for the purpose of information and does not constitute or purport to be an advise or opinion in any manner. The information provided is not intended to create an attorney-client relationship and is not for advertising or soliciting. K.Vaitheeswaran & Co. do not intend in any manner to solicit work through this Tax Alert. The Tax Alert is only to share information based on recent developments and regulatory changes. K.Vaitheeswaran & Co. is not responsible for any error or mistake or omission in this Tax Alert or for any action taken or not taken based on the contents of this Tax Alert.

For more details
  Mr. K. Vaitheeswaran, Advocate and Tax Expert, Chennai 
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DIRECT TAX ALERT – EMPLOYEE TAXATION – CHANGES IN TDS, 2016-17 Reviewed by S. Chitra on May 10, 2016 Rating: 5 D IRECT T AX A LERT – E MPLOYEE T AXATION – C HANGES IN TDS, 2016-17   By Mr. K. Vaitheeswaran,  Advocate and Tax Expert, Chennai  ...

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