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INDIA : Amid rising number of coronavirus cases, the tax department may have to come out with more measures and further extend the timelines to help the taxpayers comply with the statutory norms, acco
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NEW DELHI : After introducing new TDS (tax deducted at source) rates for high-value cash withdrawals from banks, the income tax department has now amended TDS rules further to tighten the noose and seek more disclosures.

In its latest notification, the Central Board of Direct Taxes (CBDT) has amended TDS forms to give effect to the new withholding provisions under Finance Act, 2020.

"The new forms are more comprehensive and require payers to report not only those cases where TDS is deducted, but also cases where TDS is not deducted for any reason. Separate codes have been provided to cover different situations of deduction of TDS at lower rate/ non-deduction of TDS," tax expert Shailesh Kumar, Partner, Nangia & Co LLP, said.

The amendment in Rule 31A makes it mandatory to "furnish particulars of amount paid or credited on which tax was not deducted or deducted at lower rate in view of the notification issued under second proviso to section 194N or in view of the exemption provided in third proviso to section 194N or in view of the notification issued under fourth proviso to section 194N".

The income tax department has revised format of Form 26Q and 27Q, where details of TDS deducted and deposited on various resident and non-resident payments is required to be deposited.

But if you have failed to file ITR for the last three years, you have to pay a TDS of 2% on cash withdrawal in excess of 20 lakhs to 1 crore. The rate goes up to 5% if the amount is above 1 crore. However, if your tax liability is zero you can file ITR to claim tax refund later on.

Source : Live Mint back