From the next financial year, employees who have income from sources other than salary will have to submit the new Form 12BAA. CBDT has released this form on October 15, 2024. Through this form, they will be able to tell their employer about the TDS and TCS deducted.
The Income Tax Department has simplified the rules for salaried taxpayers to claim TCS and TDS credit. The Central Board of Direct Taxes (CBDT) has amended the Income Tax rules for this. After this amendment, parents will be able to claim TCS credit for their minor children as well. Let us know about this in detail.
CBDT released Form 12BAA
From the next financial year, employees who have income from sources other than salary will have to submit the new Form 12BAA. CBDT has released this form on October 15, 2024. CBDT has said that amendment has been made in sub-section (2B) of section 192 of the Income Tax Act, 1961. With this, salaried taxpayers will be able to take advantage of tax deduction.
Employees will be able to tell about financial situation
With this new form, employees will be able to tell employers about their financial situations. Employers have to deduct TDS from the salary of the employees. Employers deduct tax from the salary of the employees every month and deposit it with the government. Now employees will be able to tell their employer about the TDS deducted through Form 12BAA. With this, employers will be able to decide how much tax they have to deduct.
Form 12BAA will include these information
Form 12BAA may contain information related to fixed deposits, insurance commission and dividends on investment in shares. If the employee has made such purchases or payments in foreign currency on which TCS has been deducted, then he can also give information about it to the employer through Form 12BAA. This form will include information about both TDS and TCS.
Everything about TDS and TDS will have to be told
In this form, employees will have to tell under which section TDS was deducted. The name and address of the person who deducted TDS will also have to be given in this form. The tax deduction and collection account number of the deductor will also have to be told. How much tax was deducted, it will also have to be told. In the case of TCS also, he will have to give all these information.
Will be able to claim credit in case of income clubbing
Now parents will also be able to claim TCS credit for their minor children. For this, amendment has been made in sub-section (4) of section 206C. With this, such parents will be able to take credit on TCS, whose minor children’s income has been clubbed in their income. This will transfer the credit of TCS from the minor to the parents.
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