Recent changes in Tax Deducted at Source and Tax
Author : trish-goza | Published Date : 2025-08-06
Description: Recent changes in Tax Deducted at Source and Tax Collected at Source under the Income Tax Act1961 206C Who Is liable to colect tax 1 Any Transferrer Person as defined Us 231 of the Act liable to collect the consideration from the
Presentation Embed Code
Download Presentation
Download
Presentation The PPT/PDF document
"Recent changes in Tax Deducted at Source and Tax" is the property of its rightful owner.
Permission is granted to download and print the materials on this website for personal, non-commercial use only,
and to display it on your personal computer provided you do not modify the materials and that you retain all
copyright notices contained in the materials. By downloading content from our website, you accept the terms of
this agreement.
Transcript:Recent changes in Tax Deducted at Source and Tax:
Recent changes in Tax Deducted at Source and Tax Collected at Source under the Income Tax Act,1961 206C Who Is liable to colect tax: 1. Any Transferrer Person as defined U/s 2(31) of the Act liable to collect the consideration from the Transferee in regards to the certain specified goods as per tabulated as under. Subject matter: Transfer of Tabulated goods Section 206C(1C) Nature of contract or license or lease, etc. Rate of TCS i. Parking lot 2% ii. Toll plaza 2% iii.Mining and quarrying (doesnot includes mining and quarrying of mineral oil, including petroleum And natural gas) 2% Section 206C(1F) Sale of Motor car exceeding Rs.10 lac 1% Section 206C(1G) Foreign remittance under the Liberalised 5% w.e.f 01.07.23 Remittance Scheme of the Reserve Bank of India 20% Foreign remittance is less than INR 7 Lakhs in the NIL Financial Year and the remittance is for the purpose of education/ medical treatment Foreign remittance in case amount/ aggregate 5% amount exceeds INR 7 Lakhs in the Financial Year and the remittance is for the purpose of education/ medical treatment Foreign remittance in case amount/ aggregate amount 0.5% exceeds INR 7 Lakhs and if the remitted amount is out of the loan that is obtained from Financial Institution u/s 80E for pursuing any education Overseas tour program package w.e.f. 01.07.23 20% Amendments in TDS: 1. Section 194BA – Introduction of withholding tax provisions for income from online gaming In view of the surge in online gaming, the government proposes to introduce specific sections for TDS w.e.f. 1 July 2023. The payer needs to deduct tax at the rate of 30% on the 'net winnings' in the user account at the end of the Financial Year (FY) or at the time of withdrawal by the user. The method for computing the net winnings is yet to be prescribed. Clarity is sought on taxability of online gaming in a scenario where the user, gaming platform and the gaming server are in different jurisdictions and each jurisdiction brings such income within its tax purview. The treaty benefit for non-residents would also not be available. Moreover, since no threshold is prescribed, the entire net winnings shall be liable for tax deduction. Section 196A – Benefit of tax treaty rate extended to specified income earned by non-residents For income earned from units of mutual funds by non-residents in India, tax is required to be deducted at
