A clarification has been issued by CBDT on TCS on Cash Sale exceeding Rs. 2 lakhs.
CBDT vide Circular No. 23/2016 dt. 24 June 2016 has clarified on FAQs of stakeholders reg. scope of the provisions and the procedure to be followed in case of the amended provisions of Section 206C of the Income Tax Act, as under:
This communication by TDS-CPC team seeks to provide important information related to a Certificate issued for Deduction of Tax at Lower/ NIL Rates under section 197/197A of the Income Tax Act, 1961.
On 29/06/2013, the Income Tax Department has released the following File Validation Utilities for the purpose of TDS Returns which would become applicable from 1st July 2013:
FVU Ver. 3.8 – Applicable from FY: 2010-11 onwards
FVU Ver 2.134 – Applicable from FY: 2007-08 till FY: 2009-10
For Fy 2006-07 or earlier financial years, eTDS returns (both regular and correction) will not be validated/filed any further. Major structural changes have announced in FVU Ver. 3.8 that would be applicable for financial year 2013-14.
As per Section 234E where a person fails to deliver or cause to be delivered a statement within the time prescribed in sub-section (3) of section 200 or the proviso to sub-section (3) of section 206C, he shall be liable to pay, by way of fee, a sum of two hundred rupees for every day during which the failure continues.
Currently, sale in cash of bullion (excluding coin or any other article weighing 10 grams or less) in excess of Rs 2 lakh or jewellery in excess of Rs.5 lakh is subject to Tax Collection at Source (TCS) @ 1%.
TDS has become most important topic today, as a minor mistake on the part of the assessee in deducting TDS leads to notices from the department. So firstly the correct Rate of TDS is to be known. Below is the TDS rate chart applicable to Financial Year 2013-14
tax 'N' accounts people
Tarun Kumar Gupta
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