Policy & Politics

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.

OB Bureau

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