New Delhi: In a bid to make the TDS form more comprehensive, the Income Tax Department has brought about changes to it. The department has made it mandatory for tax deductors to mention the reason for non-deduction of tax.Also Read - Income Tax Department Finds ₹ 300 Crore Black Money After Raids at Hyderabad Company
Further, banks will have to report tax deducted at source (TDS) for cash withdrawals above Rs 1 crore. Also Read - Good News: I-T Compliance Deadlines Extended; Tax on Employee's COVID Treatment Exempted
The Central Board of Direct Taxes (CBDT), though a notification, has amended the IT rules and included TDS on e-commerce operators, dividend distributed by mutual funds and business trusts, cash withdrawals among others. Also Read - Aadhaar-PAN Card Linking Deadline Extended Till September 30, Here’s How to Do it | Step-by-step Guide Here
The Centre has revised the format of forms 26Q and 27Q, where details of TDS amount deducted and deposited on various resident and non-resident payments are required to be filled.
Experts said that the new forms are more comprehensive and require payers to report both the cases where TDS is deducted, and the cases where TDS is not deducted for any reason.
The revised forms and rules also seek to incorporate reporting for new sections of TDS inserted in the Income Tax Act, including Section 194N for cash withdrawals and Section 197A permitting non-deduction of TDS in various situations, among others.