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Jul 06, 2020
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TDS form amended! Banks to report Tax Deducted at Source if you withdraw over Rs 1 crore
The income tax department has amended the TDS form, making it more comprehensive and mandating deductors to state reasons for non-deduction of tax. As per the amended form, banks will also have to report Tax Deducted at Source (TDS) for cash withdrawals above Rs 1 crore.
Through a notification, the Central Board of Direct Taxes (CBDT) 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.
Nangia & Co LLP Partner Shailesh Kumar said with this notification, the government has revised the format of forms 26Q and 27Q, where details of TDS amount deducted and deposited on various resident and non-resident payments are required to be filled.
Form 26Q is used for quarterly filing of TDS returns on any payment other than salary to Indian residents by the government or corporates operating in India.
Form 27Q is used for quarterly filing of TDS returns electronically on any payment other than salary to non- residents, including NRIs and foreigners. Except for government deductors, it is mandatory for all other deductors to mention their PAN in the form.
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