
Salaried employees take note! Reduce TDS from salary with new Form 12BAA released by CBDT - details here | ||||||
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Writer | Admin | |||||
TDS for salaried employees: The Central Board of Direct Taxes (CBDT) has introduced a new form, Form 12BAA, to facilitate the implementation of the Budget 2024 announcement regarding the adjustment of TDS and TCS from other sources against salary TDS. Employees will use Form 12BAA to inform their employers about tax deductions from sources other than their salaries. These sources may include fixed deposits, insurance commissions, dividends from equity shares, or tax collected while making purchases, such as buying a car or foreign currency. According to the PIB press release dated October 17, 2024, "Vide CBDT Notification No. 112/2024 dated 15.10.2024, the Income-tax Rules, 1962 ('the Rules') have been amended, introducing Form No. 12BAA as the prescribed statement of particulars required under sub-section (2B) of Section 192 of the Act. Employees must provide these particulars to their employers, who are responsible for making payments under sub-section (1) of Section 192. The employer, in turn, shall deduct TDS on salary after taking into account the furnished particulars."Also Read | Beware of ITR refund scam! You may lose lakhs with new income tax refund fraud - check I-T department advisory How does new Form 12BAA help reduce TDS from salary?
Abhishek Soni, CEO of Tax2Win.in, an ITR filing website, told ET, "An employee who wants to lower the tax deducted from salary and hike the take-home pay can use Form 12BAA to inform the employer about taxes deducted from any other source of income or taxes paid while making expenses. Form 12BAA is similar to Form 12BB, which the employee uses to make an investment declaration to the employer so that TDS on salary is deducted accordingly. " The CBDT has also modified Form 12BB to enable employees to provide additional details about their income beyond salary, report house property losses with verification, and claim TCS credit through their employer. According to Sudhir Kaushik, CEO of Taxspanner, these changes are intended to curb tax evasion and facilitate faster processing of Income Tax Returns (ITR). Also Read | New TDS rates from October 1, 2024: What are the revised tax deducted at source rates? Check list of changes for these transactions The 2024 Budget has introduced measures to streamline the process of claiming credit for tax collected at source and tax deducted at source for salaried individuals. This move aims to address the cash flow challenges faced by employees and reduce the compliance burden associated with claiming refunds.
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