TDS & TCS Amendments effective from 1 June 2015

1. Requirement for obtaining evidence/ particulars by employer for TDS–Section 192-Prescribed form from employee to be obtained for his claims. (Form not prescribed yet)

2. TDS from premature withdrawal from Employees’ Provident Fund Scheme (EPFS)–Sections 192A and 197A - Trustees of RPFs shall, at the time of payment of the accumulated balance due to the employee, deduct tax at source at the rate of 10%, where the aggregate withdrawal is Rs.30,000/- or more. Form No. 15G/15H available for non deduction. No PAN- Marginal Rate.

3. TDS from interest (other than interest on securities)–Section 194A - TDS from Recurring deposit-TDS from deposit in cooperative Banks- Interest from all branches of a Bank is to be considered to check cut off amount of Rs.10,000/-

4. TDS from payments to transporters–Section 194C- Exemption will be available only to those transporters who own ten or less goods carriages at any time during the previous year and provide a declaration on specified form (form not specified yet)

5. Obtaining/quoting tax deduction and collection account number (TAN) relaxed for certain notified persons–Section 203A- proposed to amend Section 203A to the effect that the requirement of obtaining and quoting of TAN shall not apply

6. Processing of TCS returns–Section 206CB- Processing of TCS (tax collected at source) statements on the same lines as TDS statements.

7. Self-declaration for non-deduction of tax from life insurance payments– Sections 194DA and 197A- Self-declaration in the prescribed Form No. 15G/15H made applicable.

8. Interest on certain bonds and Government securities earned by FIIs–Section 194LD-Concessional rate of tax is proposed to be extended up to 30th June 2017.

9. Furnishing of information made more stringent and penalty introduced – Sections 195 and 271-I-The obligation to furnish Form 15CA (and also Form 15CB) will have to be complied with. Section 271-I to levy a penalty of Rs.1,00,000/- if the person required to furnish information under Section 195 fails to furnish such information or furnishes inaccurate information.