The Income Tax Department has made a big change in the TDS form. The Income Tax Department has amended the form to make it more comprehensive. The department has asked the tax deductors to explain the reason for not cutting the tax. According to the revised form, banks will have to give information about TDS deduction on withdrawals above Rs 1 crore. The Central Board of Direct Taxes (CBDT) has amended the income tax rules to include TDS on dividends, cash withdrawals, professional fees and interest distributed by e-commerce operators, mutual funds.
In his statement, Shailesh Kumar, partner of Nangia & Co LLP, said that with this notification, the government has amended the format of Form 26Q and 27Q, where details related to TDS have to be filled. The same, Form 26Q is used by Indian citizens to file quarterly returns for payment of TDS on income derived from sources other than salary. In his statement, Kumar said, "The new forms are more comprehensive and the payers have to give information about such cases where TDS is deducted. Also, if you do not deduct TDS, you will also have to provide information. Different codes have been given for different circumstances like deducting TDS from lower rate or not deducting TDS. ''
For your information, let us tell you that in the revised forms and rules, places have also been specified for giving notice of the new provisions included in the Income Tax Act. For example, there is section 194N for withdrawal of cash and section 197A for not allowing deduction of TDS under various circumstances.