Govt Amends TDS Form, Makes It More Comprehensive

New Delhi: The form for tax deducted on source (TDS) has been amended.

The new form has been made more comprehensive and mandates deductors to state reasons for non-deduction of tax. Also, banks will have to report TDS for cash withdrawals above Rs 1 crore.

The Central Board of Direct Taxes (CBDT) has issued a notification through which it has amended Income Tax Rules to include TDS on e-commerce operators, dividend distributed by mutual funds and business trusts, cash withdrawals, professional fees and interest.

The format of forms 26Q and 27Q — where details of TDS amount deducted and deposited on various resident and non-resident payments are to be filled – have been altered.

Form 26Q is used for quarterly filing of TDS returns electronically on payments other than salary to Indian residents by the government or corporates in India.

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