The income tax department has amended the TDS form, making it more comprehensive and mandating deductors to state reasons for non-deduction of tax. As per the amended form, banks will also have to report Tax Deducted at Source (TDS) for cash withdrawals above Rs 1 crore.
Through a notification, the Central Board of Direct Taxes (CBDT) has amended Income Tax Rules to include , on e-commerce operators, dividend distributed by mutual funds and business trusts, cash withdrawals, professional fees and interest.
Also Read: [TDS] Central Government announces reduction in rate of Tax Deduction at Source and Tax Collection at Source
The revised forms and rules also seek to incorporate reporting for new sections inserted in the Income Tax Act, such as Section 194N for cash withdrawals, Section 197A permitting non-deduction in various situations, among others.
The government has revised the format of forms 26Q and 27Q, where details of amount deducted and deposited on various resident and non-resident payments are required to be filled.
Shailesh Kumar, Nangia & Co LLP Partnersaid,
“the new forms are more comprehensive and require payers to report not only those cases where TDS is deducted, but also cases where it is not deducted for any reason. Separate codes have been provided to cover different situations of deduction of it at lower rate/ non-deduction of TDS.”
