Tax News | Attention Tax Payers! Government’s new planning on tax, preparing for major changes in TDS



File Pic Delhi: In yet another step to provide relief to crores of taxpayers in the country, the central government has decided to merge Tax Deducted at Source (TCS) with Tax Deducted at Source (TDS) on income paid by an individual. Totally ready for. Chief Economic Advisor (CEA) Ananth Nageswaran said the objective is not to affect the cash flow of individual taxpayers. Note that a 20% TCS tax will be applicable from July 1 on spending above a certain limit abroad. The CEA, while supporting the government’s decision, said that TCS will be added to your TDS in such a way that if you have paid TCS, it will show less TDS. Industry body CII said in a program that the new system will provide relief to those taxpayers who are troubled by the difference between TCS and TDS. TCS is the tax levied by the seller at the time of sale of goods or services, while TDS is the tax levied by the government. Information provided by financial advisors Chief Financial Officer (CEO) Ananth Nageswaran said the government has excluded transactions up to Rs seven lakh from TCS, which will provide relief to small taxpayers. That is, most transactions will not come under the purview of 20% TCS. Also read Tax on overseas expenses 20% TCS rule on international credit card spends to come into effect from July 1 And after facing criticism, the finance ministry last week exempted expenses up to Rs 7 lakh from the purview of TCS. ITR filing date is coming closer. In such a situation, many people seem confused about TDS and TCS. Note that these are two different methods of tax collection, TDS stands for tax deducted at source, while TCS stands for tax collected at source. In both the cases money is deducted on the money transaction. Although this money is deposited with the government, but there is a big difference in the way of tax payment of both.

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