1. TDS Rates Changes (w.e.f. 01.10.2024)
|
Particulars |
Section |
Existing |
Proposed |
|
• Payment in respect of life insurance policy |
194DA |
5% |
2% |
|
• Commission etc on sale of lottery tickets |
194G |
5% |
2% |
|
• Payment of commission or brokerage |
194H |
5% |
2% |
|
• Payment of rent by individuals or HUF not covered under tax audit |
194IB |
5% |
2% |
|
• Payment of certain sums by certain individuals or Hindu undivided family |
194M |
5% |
2% |
|
• Payment of certain sums by e-commerce operator to e-commerce participant |
194O |
1% |
0.1% |
-
Other Amendments in TDS/TCS from 1st October 2024
(a) Section 194-IA TDS on sale of immovable property – 1% of payment made or stamp duty of property whichever is higher if the said payment or stamp duty exceeds Rs. 50,00,000
Clarification inserted:
where there is more than one transferor or transferee in respect of an immovable property, then such consideration shall be the aggregate of the amounts paid or payable by all the transferees to the transferor or all the transferors for transfer of such immovable property
(b) Ease in claiming credit for TCS collected/TDS deducted by salaried employees [Section 192 of the Act provides for deduction of tax at source on salary income]
Section 192(2B) may be amended to expand the scope of the said sub-section to include any tax deducted or collected under the provisions of Chapter XVII-B or Chapter XVII-BB, as the case may be, to be taken into account for the purposes of making the deduction under section 192(1)
(c) Payments for fees for professional or technical services under section 194J will not be covered in the term WORK as per section 194C (Payments to Contractors)
Clause (iv) of the Explanation of section 194C defines “work” to specify which all activities would attract TDS under section 194C.
The specific exclusion is added of assessees who are required to deduct tax under section 194J from requirement or ability to deduct tax under section 194C of the Act.
(d) Prosection in case of Failure to pay tax to the credit of Central Government under Chapter XVII-B (276B(a))
The section specifies that assessee punishable with rigorous imprisonment for a term which shall not be less than 3 months but which may extend to 7 years and with fine.
The amendment provides exemption from prosecution to a person covered u/s 276B(a), if the payment of tax deducted in respect of a quarter has been made to the credit of the Central Government at any time on or before the time prescribed for filing the statement of such quarter under sub-section (3) of section 200 of the Act.
(e) Extending the scope for lower deduction / collection certificate of tax at source
Section 194Q and 206C(1H) brought in lower deduction of tax certificate ambit under section 197(1) and 206(C)(9)
Section 194Q: TDS on purchase of goods @ 0.1% of the sum exceeding Rs. 50 lakhs in a year.
206C(1H): TCS on sale of goods @ 0.1% of the sum exceeding Rs. 50 lakhs in a year.
(f) 206C – collection of tax at source on business of trading in alcoholic liquor, forest produce, scrap etc – Notification of certain persons or class of persons as exempt from TCS
It is amended to provide that no collection of tax shall be made or that collection of tax shall be made at such lower rate in respect of specified transaction, from such person or class of persons, including institution, association or body or class of institutions, associations or bodies, as may be notified by the Central Government in the Official Gazette, in this behalf.