Relevant TDS Amendments in Union Budget 2015

Sr.

Sec

Main Heading

Amendment

Action Points

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1 192 Tax deduction from Salary Employer shall obtain from employee, the proofs of claims (incl. set-off of house property loss) made by him in the prescribed form and manner from 01/06/2015. Prescribed Form has not yet been notified. A simple declaration from the employee may be obtained
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2 192A TDS on Employees provident fund scheme With effect from 01/06/2015, tax is to be deducted by trustee / person authorised to make payment under Employees’ Provident Fund Scheme, 1952 as under:
a) On  premature withdrawal / lumpsum payment to employees provident fund amount when the employee has not rendered continuous service of 5 years;
b) Tax is deductible under section 194A at the rate of 10% of “taxable premature withdrawl” plus applicable surcharge and cess where the PF amount is Rs.30,000 or more. If PAN of the recipint is not available, tax is deductible at the maximum marginal rate of tax (i.e., at 34.608% for the financial year 2015-16).
A declaration in Form 15G / 15H maybe filed by the employee that his total income does not exceed maximum amount not chargeable to tax.
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3 194A TDS on Interest by co-operative bank to its members on time and recurring deposits With effect from 01/06/2015, tax will be deductible by co-operative banks on payment/credit of interest on time deposits exceeding Rs.10,000/-  to its members except where the depositor is a co-operative society. A declaration in Form 15G / 15H maybe filed with the Co-operative bank for non-deduction of tax
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4 194C TDS on payments made to resident transporters With effect from 01/06/2015, exemption from non-deduction of TDS on transport charges payments to a contractor shall apply only if the following conditions are fulfilled:
1. Recipient is engaged in the business of transport;                                                                                                                 2. Recipient owns 10 or less goods carriages at any time during the financial year;
3. Recipient furnishers a declaration to this effect along with PAN.
Declaration to be obtained from transported owning 10 or less than 10 goods carriages
 
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5 195 Non-Resident Payments With effect from 01/06/2015, person responsible for paying to a non-resident / foreign company, any sum (whether or not chargeable to Income-tax in the hands of recipient) shall furnish the information relating to payment of such sum, in Form 15CA and 15CB File remittance details in Form 15CA and CA Certificate in Form 15CB in respect of all non-resident payments
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6 206C Tax Collected at Source A correction statement for rectification of any mistake or to add, delete or update the information furnished in the statement may be filed in such form and verified in such manner, as may be specified Prescribed Form has not yet been notified.

 

Posted in Income Tax, TDS.

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